Morgan Stanley said in its latest research report that Microsoft (NASDAQ: MSFT) is positioned to sustain its growth momentum in the first quarter of fiscal 2027, supported by robust cloud computing demand, continued expansion of data center capacity, and accelerating commercialization of Microsoft 365 and Copilot.

The bank forecasts Azure revenue growth of approximately 47% year over year in constant currency, exceeding the upper end of Microsoft’s previous guidance range. Morgan Stanley maintained its Overweight rating and $600 price target on the stock.