Ge Long Hui·2025-10-31 03:13Core Viewpoint - Microsoft has shown a strong start in the current fiscal year, with Azure cloud service revenue increasing by 39% year-over-year at constant currency, slightly below the market's high expectations of 40% [1] Group 1: Financial Performance - Commercial bookings have surged by 111% year-over-year, benefiting from additional commitments from OpenAI and strong capital expenditure guidance [1] - Overall revenue exceeded expectations, with the productivity and business processes segment outperforming by 2% [1] - Personal computing revenue, driven by Windows OEM, increased by 18% year-over-year, significantly surpassing expectations [1] Group 2: Cost and Profitability - Efficiency and return on investment showed positive trends, with both sales costs and operating expenses falling below the lower guidance limit [1] - Earnings before interest and taxes (EBIT) exceeded expectations by 8% [1] - Earnings per share growth was moderate due to OpenAI-related losses amounting to $3.7 billion, compared to the guidance of $1.3 billion [1] Group 3: Analyst Rating - Citi has assigned a "Buy" rating to Microsoft with a target price of $682 [1]