Microsoft's Added Capacity From Improving Efficiency Converting to Revenue, Oppenheimer Says

03:00 PM EDT, 10/29/2026 (MT Newswires) -- Microsoft's (MSFT) added capacity from improving efficiency is converting to revenue, and Copilot monetization is broadening beyond seat growth, easing concerns about AI disruption, Oppenheimer said in a note Thursday. Oppenheimer said Microsoft 365 commercial cloud growth accelerated in the September quarter even as seat growth slowed, helped by higher revenue per user from Copilot, upsell to premium-suite and GitHub Copilot consumption. The brokerage said Azure growth beat buy-side expectations, and management guided to roughly 50% growth for the December quarter. Some added capacity is pushing out to H2 of fiscal 2027, which could limit capacity-driven upside in later quarters, it said. Oppenheimer reiterated the company's outperform rating, with a price target of $625. Price: 528.45, Change: -2.56, Percent Change: -0.48