Jefferies Sticks With Buy on Microsoft After Survey

A fresh Jefferies survey of 40 enterprises finds M365 Copilot usage jumped to 82%, up from 77% last fall, and forecasts Copilot could drive roughly $11 billion in revenue for Microsoft MSFT by 2026.

Respondents told Jefferies they plan to boost their Microsoft spending by about 4% over the next two years. That confidence helped Jefferies reaffirm its buy rating on MSFT and set a $600 target, calling the company a top AI winner. Brent Thill's team points out that at 31-one times 2026 EPS, Microsoft still looks attractively valued given Copilot's growth runway.

As businesses weave AI deeper into their workflows, Copilot's revenue potential could become a major pillar of Microsoft's cloud story. Even with conservative assumptions, Jefferies pegs Copilot at just over $5 billion in 2025 and $11 billion in 2026.

A separate Morgan Stanley MS CIO survey shows tech leaders planning year?over?year spending increases of more than 6% on Microsoft tools. If those plans hold, Copilot's boom may prove to be the next big chapter in enterprise AI.