Lates News

CMB International released a research report stating that Microsoft's revenue for the fourth quarter ending in June reached $76.4 billion, an 18.1% year-on-year increase, surpassing the bank's and market consensus estimates by 3.6% and 3.5% respectively. The three major business segments all exceeded expectations; net profit increased by 23.6% year-on-year to $27.2 billion, benefiting from improvements in business operation efficiency, exceeding the bank's and market consensus estimates by 9% and 8% respectively. Core infrastructure business growth was driven by large customers, with Azure and other cloud service revenue increasing by 39% year-on-year in the fourth quarter, exceeding the previous guidance of 34% to 35%. The bank raised its revenue and operating profit forecasts for Microsoft for the fiscal years 2026 and 2027 by 2% to 4% and 3% respectively to reflect the higher-than-expected growth in cloud services and productivity and business processes (PBP) business revenue. Based on the potential for profit growth and improved cash flow generation, the bank raised its discounted cash flow (DCF) target price by 18% from $510.3 to $601.5, corresponding to a forecasted price-to-earnings ratio of 38.8 times and 33.6 times for fiscal years 2026 and 2027, maintaining a "buy" rating.