Piper Sandler analyst Billy Fitzsimmons raised his Microsoft price target to $610 from $550 and maintained an Overweight rating, citing the company’s Super App announcement, the new E7 enterprise licensing plan and consumption-based pricing for Copilot and Cowork. Piper estimates that each 10% migration of seats from E5 to E7 would add $2 billion in annualized revenue, while Copilot and Cowork consumption revenue could reach a $2 billion annualized run rate by fiscal 2028. E7 combines Copilot, E5, Entra and Agent 365, and Microsoft said hundreds of enterprise customers bought millions of seats within two months of its launch, including EY’s deployment for 400,000 employees. Microsoft reported fiscal fourth-quarter 2026 revenue of $90.01 billion and non-GAAP earnings per share of $4.74, while Azure grew 43% and Microsoft 365 Copilot exceeded 30 million paid seats. The company’s AI spending remains a central risk: fiscal 2026 capital expenditures rose 79.62% to $115.95 billion, and management expects about $175 billion in fiscal 2027.