10:42 AM EDT, 10/22/2025 (MT Newswires) -- Microsoft ( MSFT ) is set to report "robust" fiscal Q1 results as fiscal 2026 remains the "true inflection year" of its artificial intelligence growth, Wedbush Securities said in a Wednesday note.

"We believe Microsoft ( MSFT ) is in the midst of hitting its next phase of monetization on the AI front," Wedbush said, noting enterprises' accelerating AI budgets and Microsoft's ( MSFT ) deployments.

Wedbush said its recent partner checks indicate strong Copilot deployments, potentially adding about $25 billion to the company's fiscal 2026 top-line. Deal conversions for broad enterprise-scale AI deployments continue to accelerate as more clients look to expand enterprise use cases across multiple verticals, Wedbush added.

"We view MSFT as the clear frontrunner on the enterprise hyper-scale AI front despite increasing competition," the investment firm said. The company remains focused on its AI monetization strategy and plans to continue building data centers while demand is strong, Wedbush added.

Microsoft ( MSFT ) is set to release its fiscal Q1 results on Oct. 29.

Wedbush reiterated its outperform rating and $625 price target on Microsoft ( MSFT ).

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