BNP Paribas Exane raised its FY2027 revenue and capex estimates for Microsoft ahead of the July 29 Q4 print, citing faster Azure and Copilot adoption.
Microsoft (MSFT) reports fiscal fourth-quarter results July 29, and BNP Paribas Exane expects the print to show revenue and capital spending accelerating on Azure and Copilot demand.
Analyst Stefan Slowinski raised his FY2027 revenue and capex estimates, citing faster cloud adoption and enterprise AI deployment. The firm sees Azure growth re-accelerating as more customers move workloads onto the platform and Copilot subscriptions broaden beyond early adopters.
Capital expenditure is the other headline. BNP now models Microsoft spending more on data-center buildout through calendar 2027, a signal the company sees enough demand to justify the outlay. The higher capex forecast comes as Microsoft competes with Amazon and Google for GPU capacity and data-center real estate.
Microsoft shares fell 1.8% to $393.82 on the session, giving back some of a recent run that lifted the stock to near all-time highs. The Alpha Score sits at 61, a Moderate reading that suggests the setup is neutral heading into the print.
Slowinski's call hinges on whether the Q4 report confirms the acceleration he projects. If Azure growth tops the 33% the Street expects and Copilot revenue shows a material sequential step-up, the bull case for FY2027 gets a concrete data point. A miss on either metric would test the capex thesis.
Microsoft reports after the close July 29. No pre-announcement is expected.
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