Piper Sandler raises Microsoft target to $610 on E7 and AI growth
Piper Sandler analyst Billy Fitzsimmons raised Microsoft’s price target to $610 from $550, citing the company’s E7 enterprise licensing tier and AI-driven revenue growth. The firm estimates a 10% shift from E5 to E7 could generate $2 billion annually, while Copilot and Cowork consumption revenue may hit $2 billion by fiscal 2028. Microsoft reports 30 million paid Copilot seats and $90.01 billion…
Key points
- Piper Sandler raises Microsoft target to **$610** on E7 and AI revenue growth
- E7 adoption could add **$2B annually** per 10% shift from E5, with Copilot revenue targeting **$2B by 2028**
- Microsoft reports **$90.01B Q4 revenue**, **30M Copilot seats**, and **$100B+ Azure annual revenue**
E7 bundles Copilot, E5, Entra, and Agent 365, with Microsoft noting millions of seats sold in two months, including a 400,000-employee rollout at EY. The shift to usage-based pricing for Copilot and Cowork is central to the thesis. However, Microsoft’s $115.95 billion capex in 2026—up 79.62%—and warnings about AI investment risks remain concerns. Analysts revised fiscal 2027 EPS forecasts upward, but the stock’s valuation at 25x forward earnings reflects uncertainty.
Piper Sandler Raises Microsoft Target, Sees Billions in Potential From E7 and AI
247wallst.com · 29 September 2026
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