Microsoft stock rises 4% after Haleon AI deal

Microsoft shares rose 4% after consumer health company Haleon announced a five-year agreement to expand its use of Microsoft’s artificial intelligence, Azure cloud services and Microsoft 365 Copilot across its global operations.

Under the agreement, Haleon will deploy Microsoft 365 Copilot and extend Azure and Microsoft AI platforms across the business. The companies said the tools will automate routine tasks, strengthen security and identity protection, improve collaboration and help employees make faster decisions to accelerate product delivery.

Haleon and Microsoft plan to work on joint AI capabilities for consumer research, product development and supply chain management. Haleon described the expansion as a continuation of its existing relationship with Microsoft and part of the company’s plan to reach one billion additional consumers by 2030.

Market participants noted the deal as a significant enterprise adoption of Microsoft’s AI services. Microsoft currently trades at a forward 12-month price-to-earnings ratio of about 21.5. Among analysts covering the stock, 35 rate it a buy and one rates it a hold. The average 12-month price target is $562.10, roughly 38% above current levels.

Separately, reports indicate Microsoft is preparing another round of workforce reductions as it increases investment in AI infrastructure. The potential cuts could total thousands of roles, affecting fewer than 2.5% of about 228,000 full-time employees, smaller than the earlier reduction of roughly 4%. Possible areas for reductions include the gaming division, sales and consulting roles. Microsoft has not confirmed the reports. The timing coincides with the company’s fiscal year end on June 30, when budgets and staffing are reviewed.

Microsoft’s stock declined about 23% in the first half of 2026. Revenue forecasts show Microsoft’s top-line growth is expected to run at more than twice the pace of the S&P 500 through 2028. The Haleon agreement expands commercial deployment of Microsoft’s AI and cloud offerings across a large enterprise customer.