Ge Long Hui·2026-02-05 07:00Core Viewpoint - Microsoft reported a strong performance for Q2 of fiscal year 2026, exceeding market expectations in revenue and profit metrics driven by AI product demand [1] Financial Performance - Total revenue increased by 17% year-over-year to $81.3 billion, surpassing market expectations of 15% growth and the firm's forecast of 16% [1] - Operating profit rose by 21% year-over-year to $38.3 billion, exceeding market expectations of $36.6 billion and the firm's estimate of $36.9 billion [1] - GAAP net profit surged by 60% year-over-year to $38.5 billion, driven by investment returns from OpenAI, significantly above market expectations of $28.8 billion and the firm's forecast of $27.5 billion [1] - Non-GAAP diluted earnings per share increased by 24% year-over-year to $4.14, exceeding market expectations of $3.91 and the firm's estimate of $4.09 [1] Product Demand - Continued strong demand for AI products, including M365, Windows, and search, contributed to better-than-expected performance for the quarter [1] Rating and Target Price - The firm maintains an "outperform" rating for Microsoft with a target price of $586 [1]