The Point for North America

Research evidence excerpt

The Point for North America

Point |

Thursday, 30 June 2026

Morning Call Highlights | Company | Industry | Economics & Strategy | Fixed Income & FX | Key Rating

and Target Price Changes

Must Read

Morning Call Highlights

North America - Road Ahead 2H26

Microsoft Corp. (MSFT.O) - Accelerates Where It Matters Most; Raising

Estimates and TP

Microsoft’s strong 4Q26 results offered a solid rebuttal to the bear case. A robust

and broad-based beat/raise across both top and bottom lines featured

accelerations in two of Microsoft’s most consequential franchises. Azure shined

with growth of 43% y/y cc, a 4 pt beat/acceleration, and even stronger outlook of

45% (also 4pt beat), while CoPilot seat additions topped 10M (double last Q) with

acceleration in M365 Commercial Cloud guided for FY27. Profitability came in

stronger for the quarter and outlook with Capex expectations largely reiterated,

showing signs of improving efficiency. As the AI industry grapples with rapidly

evolving questions around open source/smaller models, Microsoft increasingly

looks better positioned with a focus on model choice. Following a strong Q4 we

raise our FY27 estimates rather materially with total revenue/EPS moving 1pt+

higher while our Azure growth moves up 3pts to 45.5%, increase our TP to $600

~26x FY28 EPS discounted back.

Tyler Radke | Yitchuin Wong

F4Q26 Results FY27 Citi Estimates vs. Consensus and

Expectations

Meta Platforms Inc (META.O) - Meta’s AI Product Roadmap Emerging as

Compute Scales with Multiple Paths for Monetization

While 2Q revenues & 3Q guidance were largely in-line with expectations, we

emerge from the quarter incrementally positive on Meta’s product strategy, while

acknowledging the debates around continued CapEx spend, tangible ROI, and

profitability.