Citi Lifts Microsoft Copilot Forecasts to 8 Million Net Adds as Azure Momentum Builds
Updated
Updated · CNBC · Jul 15
Citi Lifts Microsoft Copilot Forecasts to 8 Million Net Adds as Azure Momentum Builds
3 articles · Updated · CNBC · Jul 15
Summary
Citi raised its Microsoft Copilot estimates after industry checks pointed to stronger adoption and better customer feedback ahead of Microsoft's July 29 fiscal Q4 earnings.
The bank now expects M365 Copilot net adds of 8 million, up from 5 million in Q3, and sees that traction helping drive a strong fiscal 2026 fourth quarter and momentum into fiscal 2027.
Citi kept a buy rating but cut its price target to $570 from $620, saying enterprise-software valuation multiples have compressed even as Azure trends remain encouraging.
Microsoft shares rose more than 3% Wednesday and are up 6% in July, but the stock is still down 18% this year and about 27% below its October 2025 record close.
The upbeat Copilot call pushes against broader fears that AI could erode software spending, a concern sharpened by IBM's software warning and reports Starbucks wants to trim a $400 million annual software bill.