MICROSOFT (+) : Delivering on multiple fronts as Copilot lifts off

Research evidence excerpt

MICROSOFT (+) : Delivering on multiple fronts as Copilot lifts off

EQUITIES

SOFTWARE

MICROSOFT OUTPERFORMPRICE* USD418.6  TARGET PRICE USD555 (UPSIDE 33%)

Delivering on multiple fronts as Copilot lifts off

Ahead of our Microsoft NYC NDR on June 10, we revisit our Microsoft investment thesis26 MAY 2026

Securities Research Report We believe Microsoft is delivering on what we outlined as crucial in our April presentation (see Stuck

Production time: 05:36* (London time) in the mud. What can kickstart the stock again?). Following investor concerns around modest Copilot

Research Analysts & Publishing Entities traction while AI-natives (namely Anthropic) impressed with rapid ARR scaling and Claude’s

Stefan Slowinski functional capabilities, Copilot end-users are finally beginning to receive access to capabilities that

BNP Paribas London Branch were already existing (i.e. Agent Mode) but were constrained by gradual GA rollouts and slow(+44) 203 430 8549

stefan.slowinski@uk.bnpparibas.com enterprise IT deployment cycles. Microsoft should now be able to flex its distribution advantage

across its M365 installed base. We also see the OpenAI relationship as increasingly de-riskedDaniel Wang

BNP Paribas Securities Corp1 following the recent update of the agreement (see link), removing AGI risk, along with OpenAI’s

+1 646 785 3326 successful $122bn of funding, allowing OpenAI to meet its $250bn+ Azure commitments, and

daniel.wang@us.bnpparibas.com OpenAI’s success in its recent court case, potentially opening the door to a near-term IPO (see FT).

Keeler Patton

BNP Paribas Securities Corp1 Copilot usage and user feedback trending in the right direction

(+1) 646 342 6138 We note that Copilot user sentiment appears to be meaningfully improving and usage trends across