Citi: Microsoft Azure Growth Beats Expectations at 43%, Copilot Seats Surpass 30 Million

According to TechFlow Research, Citigroup's research report on July 30 showed that Microsoft's fourth quarter Azure cloud revenue increased 43% year-over-year, exceeding market expectations of 40% and accelerating further from 39% in the previous quarter. Copilot paid seats reached 30 million, with a net increase of 10 million in a single quarter, doubling compared to the previous quarter. Intelligent Cloud revenue was $39.3 billion, up 31% year-over-year; Productivity and Business Processes revenue was $37.8 billion, up 14% year-over-year. Fourth quarter adjusted earnings per share was $4.81, significantly higher than the market expectation of $4.21. Citigroup believes this financial report powerfully refutes bearish views, as Azure re-acceleration and Copilot volume surge occurred simultaneously, and the AI monetization logic is being realized. Citigroup raised its target price from $570 to $600, maintaining a Buy rating, corresponding to approximately 26 times fiscal year 2028 earnings per share, implying approximately 54% upside potential compared to the current stock price of $390.