Piper Sandler Boosts Microsoft Stock Target to $610 Amid AI Sales Growth
Microsoft's stock price has been boosted by an analyst from Piper Sandler, who raised their target price to $610 from $550. This increase is tied to the company's expanding AI sales and the potential for a significant revenue boost if Microsoft 365 users shift to the E7 enterprise licensing plan.
The estimate suggests that a 10% shift of seats from E5 to E7 could generate $2 billion in annualized revenue. This view was expressed by Billy Fitzsimmons, Piper Sandler's analyst, who maintained an Overweight rating for Microsoft stock.
Microsoft reported Q4 2026 revenue of $90.01 billion, up 17.75% year-over-year and ahead of the consensus estimate. Azure and other cloud services revenue grew 43%, while Microsoft 365 Copilot surpassed 30 million paid seats during the quarter.