Bernstein: Azure Revenue Expected to Grow 45%, Microsoft Target Price Set at $662

S, according to Chaotian Research, Bernstein's research report dated October 19, 2026 indicates that Microsoft's 1Q27 revenue is projected at $92.11 billion, 1.6% above consensus estimates; EPS is expected to be $4.76, 0.7% above consensus; Azure revenue is forecast to grow 45.6%, surpassing consensus expectations of 44.9%; Microsoft 365 Commercial Cloud (M365 Commercial Cloud) is expected to grow 18% in 1Q27, with growth accelerating to 20% in 2Q27.

Bernstein assesses that Azure and Office can accelerate simultaneously, with Copilot paid seats exceeding 30 million. As capacity constraints ease, both businesses will see synchronized growth, presenting a valuation re-rating opportunity for Microsoft. Maintaining an Outperform rating, the target price has been raised from $660 to $662, representing a 25% upside from the current share price of $529.05.