Microsoft Corporation (MSFT.US) received a "buy" rating from Wells Fargo & Company on the eve of its Q2 financial report, with expectations that Azure will drive accelerated revenue growth in the second half of the year.

Before Wells Fargo & Company announced its second quarter performance in the 2025 fiscal year, it reiterated its "hold" rating on Microsoft Corporation and maintained a target price of $515. The analyst team at Wells Fargo & Company, led by Michael Turrin, provided insights into Microsoft Corporation's upcoming second quarter performance. They believe that Microsoft Corporation's performance in the quarter will show balanced growth. Analysts pointed out that Microsoft Corporation's cloud revenue and order volume are expected to continue benefiting from ongoing integration in the software field. Additionally, Microsoft Corporation's leading position in the field of artificial intelligence, especially Azure AI, will provide strong support for its performance growth. Furthermore, the ample year-end budget provides security for the company's business development. However, analysts expect the second quarter to be a low point in Microsoft Corporation's business growth. Nevertheless, they are optimistic about the future development of Azure, believing that improvements in Azure will drive a reacceleration of revenue growth in the second half of the year, potentially reaching double-digit percentage growth. In conversations with partners, Turrin and his team noted that Microsoft Corporation is shifting its focus to Copilot Studio, making the development of Copilot Agents possible. The analysts also mentioned that partners have observed that the adoption rate of agents is significantly faster than Microsoft 365 Copilot, which had a slower start initially but is gradually improving. Furthermore, analysts also mentioned that they have heard discussions about Microsoft Corporation increasing its focus on Microsoft 365 adoption. Particularly in enterprise plans such as E3 and E5 suites, security, and Teams Phone, Microsoft Corporation is actively promoting the adoption and application of its products.