In "The Big Bank," China International Capital Corporation predicts that Microsoft's revenue for the first fiscal quarter will grow by 15.4% year-on-year, maintaining a target price of $560

AASTOCKS
2025.10.30 06:36

CICC released a report stating that Microsoft (MSFT.US) will announce its fiscal year 2026 Q1 results on Thursday (30th) Beijing time. The company is expected to report total revenue of USD 75.661 billion for Q1, a year-on-year growth of 15.4%; Azure is expected to grow by 37% year-on-year; diluted earnings per share are expected to be USD 3.71, a year-on-year growth of 12%. The consensus estimate for Q1 revenue on FactSet is USD 75.375 billion, a year-on-year growth of 14.9%; Azure is expected to grow by 38% year-on-year; the consensus estimate for diluted earnings per share is USD 3.67, a year-on-year growth of 11%.

CICC indicated that it is optimistic about Microsoft's deep synergy effects in the AI technology revolution in the long term, maintaining its revenue forecasts for the fiscal years 2026 and 2027 largely unchanged, keeping the net profit forecast for fiscal year 2026 largely unchanged, and slightly raising the net profit forecast for fiscal year 2027 by 1.1% to USD 141 billion. It maintains an "outperform industry" rating and keeps the target price unchanged at USD 560, which corresponds to 35 times and 30 times the price-to-earnings ratio for fiscal years 2026 and 2027, respectively. The current price corresponds to 33 times and 28 times the price-to-earnings ratio for fiscal years 2026 and 2027

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