Microsoft (MSFT) / Bill Gates 02 (Apr 18 - Dec 27)

[winston]

Microsoft drops amid slowing cloud growth, record spending

By Matt Day & Brody Ford

Spending surged to a record high and cloud sales growth slowed, sending the shares down sharply amid investor concerns that it could take longer than expected

Capital expenditures for the fiscal second quarter hit US$37.5 billion, up 66% from a year earlier and exceeding analyst estimates for US$36.2 billion.

Azure cloud-computing unit posted a 38% revenue gain.

Total sales increased 17% to US$81.3 billion during the quarter, while profit was US$5.16 a share.

Source: Bloomberg

https://theedgemalaysia.com/node/791054

[winston]

not vested

Microsoft Corporation - Stock Analyst Research
Target Price* 540.00
Recommendation BUY

Microsoft Corp – Prioritising Azure amid supply shortages

2Q26 revenue met our expectations with revenue/adj.

PATMI was at 50%/51% of our FY26e forecasts.

Revenue grew 17% YoY driven by 40% YoY growth in Azure cloud revenue. Adj. PATMI rose 23% YoY to US$30.9bn, driven by higher operating leverage.

For 3Q26e, Microsoft expects revenue to rise 16% YoY to US$81.2bn, driven by continued strong growth across commercial businesses.

Azure is projected to grow 37%, as the company continues to prioritise supply amid demand exceeding capacity.

Commercial RPO rose 110% YoY to US$625bn and are expected to be recognised over the next 2.5 years.

We upgrade our recommendation to BUY from ACCUMULATE with an unchanged DCF target price of US$540, due to recent price performance.

There are no changes to our forecast.

The company is currently valued at a blended forward PE of 23.9x, below the -1 standard deviation of 27.2x.

Source: Phillips

https://www.poems.com.sg/stock-research/MSFT/