# Piper Sandler raises Microsoft target to $610 on E7 and AI growth

Digest AI · Business & Funding · published 2026-09-29T20:15:00Z

Canonical: https://digestai.news/story/piper-sandler-raises-microsoft-target-to-610-on-e7-and-ai-growth

## Summary

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 in Q4 revenue**, up **17.75%** year-over-year, with Azure surpassing **$100 billion** in full-year 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.

## 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**

## Why it matters

Microsoft’s E7 tier and AI monetization could unlock **$4B+ annual revenue** by 2028, but execution risks—like customer adoption and margin pressure—loom over its stock valuation.

## Sources

1. [Piper Sandler Raises Microsoft Target, Sees Billions in Potential From E7 and AI](https://247wallst.com/investing/2026/09/30/piper-sandler-raises-microsoft-target-sees-billions-in-potential-from-e7-and-ai) (247wallst.com, 2026-09-29)

## Cite

Digest AI, "Piper Sandler raises Microsoft target to $610 on E7 and AI growth", 29 September 2026, https://digestai.news/story/piper-sandler-raises-microsoft-target-to-610-on-e7-and-ai-growth

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