Microsoft likely to post 'modest' upside in Q1, with catalysts coming: BofA
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Microsoft (NASDAQ:MSFT) is slated to report fiscal first-quarter results on October 24 and investment firm Bank of America said it is expecting the tech giant to post "modest" upside, with catalysts coming later in the year.
Analyst Brad Sills, who has a buy rating and $405 price target on Microsoft (MSFT), said recent checks show "sustained, healthy" new workloads for Azure. As such, he is expecting at least 1% upside to his revenue estimate of $54.3B, thanks to both Azure and Office 365. 
"While 1% revenue upside for [the first-quarter] is unlikely to represent a major catalyst, we see several coming as we move through [fiscal 2024]," Sills wrote. He added that growing AI contributions to Azure, an increase of Microsoft 365 Copilot to Office growth and easing PC headwinds should all help the Satya Nadella-led company. 
In addition, Sills said continued strength in artificial intelligence workloads should add to growth, while "solid" adoption of security offerings and a strong close in the federal fiscal year all bode well for Microsoft.

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