Ge Long Hui·2026-01-29 05:52Core Viewpoint - Citigroup's report indicates that Microsoft's revenue and profit performance last quarter was robust, with Azure cloud business growing 38% year-on-year, slightly below market expectations of 39% to 40% growth [1] Group 1: Financial Performance - Microsoft's strong business order growth of 228% year-on-year was a key driver of performance, supported by the previously announced partnership with OpenAI and new contracts with Anthropic [1] - Capital expenditure reached $37.5 billion, exceeding market expectations of $34 billion [1] Group 2: Outlook - The quarterly performance outlook for Microsoft is mixed, with memory and supply chain issues leading to weakness in the personal computing (MPC) segment, which negatively impacted earnings per share [1] - However, the outlook for Azure shows a slight increase in growth expectations compared to the previous quarter and is slightly above market expectations [1] Group 3: Investment Rating - Citigroup currently maintains a "Buy" rating for Microsoft with a target price of $660 [1]