Microsoft Azure Growth, Copilot Monetization in Focus Ahead of Earnings, BofA Says

10:45 AM EDT, 10/23/2026 (MT Newswires) -- Microsoft's (MSFT) fiscal Q1 results are likely to reflect sustained Azure growth, growing Copilot monetization, and improving visibility into returns on elevated AI spending, BofA Securities said in a Friday research report. The company is scheduled to report its fiscal Q1 results Wednesday. BofA expects fiscal Q1 Azure growth of 44.8% year over year in constant currency to $32.3 billion, supported by Microsoft adding nearly 1 gigawatt of data center capacity per quarter. Fiscal Q1 EPS is expected to be $4.73 on revenue of $90.6 billion. The redesigned Copilot user interface is another step in Microsoft's effort to position Copilot as the operating layer for enterprise AI. BofA raised its fiscal 2027, 2028 and 2029 EPS of $19.70, $23.43, and $28.49. The investment firm's CIO survey highlighted Microsoft's strength across every layer of the enterprise AI stack, spanning applications, security, and infrastructure, the analysts wrote. BofA reiterated its buy rating and $600 price objective on the stock. Price: 522.28, Change: +1.19, Percent Change: +0.23