11:23 AM EDT, 07/17/2024 (MT Newswires) -- Microsoft ( MSFT ) is seeing "sustained" strength in its Azure and Office businesses, which could prompt the technology giant to reiterate an outlook for double-digit revenue growth, BofA Securities said Wednesday.

The company is scheduled to report fiscal Q4 results July 30. BofA expects 1% upside to its revenue outlook of $64.05 billion, aided by "sustained" Azure strength, analyst Brad Sills said in a note to clients.

"Partners suggests sustained [artificial intelligence] and core workload strength, which is likely to translate to Azure growth of 31.5% y/y versus our base for 30.5% y/y," Sills said. "With sustained Azure and Office strength, we expect a reiterated outlook for double-digit [revenue] growth and margin to be down 100bps on ramping capex driving cost of sales higher."

BofA said it expects the Office business to achieve a growth rate of up to 20% by the first quarter of fiscal year 2016, in an upside scenario.

BofA raised its price objective on the Microsoft ( MSFT ) stock to $510 from $480 while reiterating its buy rating.

The company's shares were down more than 2% in recent trading.

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