Xin Lang Cai Jing·2025-08-04 07:12Core Insights - UBS reported that Microsoft delivered impressive results for the second quarter, with Azure cloud service growth rate exceeding expectations for two consecutive quarters, and overall revenue growth of 17% [1] - Profit margins surpassed expectations, with unfulfilled orders and new contract volumes increasing by 35% and 30% respectively [1] - UBS believes that the growth momentum for Azure primarily stems from core non-AI demand, particularly from large enterprises migrating workloads from on-premises to Azure [1] Financial Projections - UBS has raised its Azure growth forecast and anticipates that Microsoft's capital expenditures for fiscal year 2026 will increase, although at a lower rate than the 58% growth seen in fiscal year 2025 [1] - The target price for Microsoft has been increased from $600 to $650, and the earnings per share forecast for fiscal year 2026 has been adjusted from $15.09 to $15.73 [1] - Capital expenditure forecast for fiscal year 2026 has been raised to $120 billion, compared to the previous estimate of $99.7 billion [1]