Microsoft's (MSFT) Q4 results are likely to demonstrate robust AI business and steady M365 revenue growth, but higher capex, stiff competition and risks of AI disruption will continue to weigh on investor sentiment, Oppenheimer said in a Wednesday note.
Oppenheimer said it expects Q4 EPS of $4.16 on revenue of $87 billion, arguing that channel checks around enterprise IT demand, pipeline and June quarter performance are positive for the company.
Microsoft is set to report its Q4 results on July 29.
Analysts noted that they expect Q4 Azure constant-currency revenue growth of 41%, which could support the company's multiples since its reiterated robust usage for its AI division.
Oppenheimer said it reiterated its outperform rating on the stock and price target of $515.
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