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CMBI Slightly Raises Microsoft Corporation (MSFT.US) TP to USD616.4, Maintains Buy Rating
Recommend 3 Positive 12 Negative 0 |
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CMBI released a research report stating that Microsoft Corporation (MSFT.US) delivered strong results for 3QFY2026 (ended June), with total revenue reaching USD82.9 billion, up 18.3% YoY and 2% above market expectations. Revenue from all three major business segments exceeded expectations. Operating profit rose 20% YoY to USD38.4 billion, 3% to 4% above market forecasts, mainly driven by better-than-expected performance in Productivity and Business Processes (PBP) and More Personal Computing (MPC). The report noted that Azure and other cloud services revenue grew 40% (up 39% at constant exchange rates), exceeding prior guidance of 37% to 38%. Management expects revenue growth of 39% to 40% in 4QFY2026. Management emphasized that GitHub Copilot has shifted to a usage-based billing model, enabling pricing to better align with actual usage and costs. It also expects that all businesses currently charged based on user count will gradually transition to a "per-user + usage-based" pricing model. CMBI believes this model could further unlock commercialization potential and ease market concerns going forward. CMBI maintained its revenue and operating profit forecasts for FY2026 to FY2028 largely unchanged. Based on a discounted cash flow model, the TP was slightly raised to USD616.4 (from USD614.6), implying 31.5x FY2027 forecast PE. The Buy rating is maintained. (ad/da) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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