Microsoft's Azure Growth May Have More to Come, BNP Paribas Analyst Says

Microsoft's Azure growth has been accelerating, and analysts at BNP Paribas believe there may be more to come. According to Stefan Slowinski, Microsoft executives acknowledged that Azure pricing is increasing, but existing contracts will not be rewritten. Instead, pricing will reset upon renewal, which could gradually boost cloud revenue as customer contracts renew.

The firm also sees a possible SpaceX deal as a future catalyst for Microsoft's growth. While the company declined to confirm any relationship, Slowinski suggests that we would not be surprised if there is a potential future announcement. SpaceX recently disclosed a new compute customer expected to spend roughly $1 billion per month starting in December.

Slowinski maintains a Buy rating and $549 price target on Microsoft. He emphasizes the importance of watching renewal cycles, cloud growth, and whether higher prices begin adding to revenue without hurting demand. A confirmed SpaceX deal would provide another capacity source, but execution and economics would matter more than the headline.