Takeaways from Management Meetings: Material Improvements to Copilot YTD

研报英文原文证据摘录

Takeaways from Management Meetings: Material Improvements to Copilot YTD

C O M PA N Y N O T E

M a y 2 6 , 2 0 2 6

Microsoft Corporation (MSFT) Overweight

CONCLUSION PRICE: US$418.57

We hosted meetings in Boston last week with Jonathan Neilson (Head of Microsoft IR) and TARGET: US$540.00

Danielle Criste (IR), walking away incrementally positive on 1) the ability for the multitude 17x CY30E EV/OCF, discounted back 3 years

of recent Copilot enhancements (Model Choice, Copilot Cowork, WorkIQ) to help drive the by 14%. This assumes $38B net cash and 7.5B

expected 5M+ Copilot seat adds q/q for F4Q, 2) the conversion of AI capex to Cloud rev, shares.

3) the ability for 1P models to drive higher mgns, 4) the updated OpenAI agreement as a

Billy Fitzsimmons, CFAtailwind to GMs, and 5) the LT shift to hybrid seat/usage apps monetization. MSFT remains Sr. Research Analyst, Piper Sandler & Co.

one of our top picks, well positioned to capitalize on both OpenAI and Anthropic's growth. 312 281-3438, billy.fitzsimmons@psc.com

Hannah Rudoff

• Copilot Enhancements YTD Drive Differentiation. Copilot seats in F3Q totaled 20M Research Analyst, Piper Sandler & Co.

(~4.4% of the M365 base; up from 15M in F2Q) and IR reaffirmed commentary from the 503 275-8313, hannah.rudoff@psc.com

F3Q call that MSFT expects to add more than 5M seats in F4Q. Customers are opting J.R. Herrera

to add Copilot mid-contract. Usage intensity remains encouraging, with Copilot usage Research Analyst, Piper Sandler & Co.

503 275-8314, jr.herrera@psc.com stats tracking similarly to Outlook. IR highlighted the significant Copilot enhancements

in just a couple months that drive differentiation vs. the frontier model providers: Changes Previous Current