Microsoft(US:MSFT) Huaan Securities·2025-02-10 01:49Investment Rating - The report maintains a "Buy" rating for Microsoft, expecting a leading investment return compared to market benchmarks over the next 6-12 months [7]. Core Insights - Microsoft reported FY25Q2 earnings with total revenue of $69.632 billion, a year-over-year increase of 12.3%, slightly above Bloomberg consensus estimates by 1.04% [6]. - Operating profit reached $31.653 billion, up 17.1% year-over-year, exceeding Bloomberg estimates by 5.84% [6]. - GAAP net profit was $24.108 billion, reflecting a 10.2% year-over-year increase, also above consensus estimates by 2.5% [6]. - Capital expenditures (CapEx) amounted to $22.6 billion, surpassing expectations by 7.63% [6]. - The cloud business showed mixed results, with Azure revenue growth slowing down to 31% year-over-year, below the expected 31.75% [6][7]. Financial Performance Summary - Total revenue for FY2024 is projected at $245.122 billion, with expected growth rates of 12.7%, 13.4%, and 13.8% for FY2025, FY2026, and FY2027 respectively [10]. - Non-GAAP net profit is forecasted to be $88.136 billion for FY2024, with growth rates of 10.2%, 10.5%, and 21.5% for the following years [10]. - Earnings per share (EPS) is expected to rise from $11.80 in FY2024 to $17.36 by FY2027 [10]. Business Segment Performance - The productivity and business processes segment generated $29.437 billion in revenue, a year-over-year increase of 13.9%, exceeding expectations by 4.97% [6]. - The personal computing segment reported $14.651 billion in revenue, showing a minimal increase of 0.1% year-over-year, also above expectations by 1.58% [6]. - The intelligent cloud segment recorded $25.544 billion in revenue, an 18.7% year-over-year increase, but fell short of expectations by 1.36% [6]. AI Business Growth - AI-related revenue within Azure grew by 157% year-over-year, contributing 13% to Azure's overall revenue growth [6]. - Microsoft 365 Commercial products and cloud services revenue reached $21.117 billion, reflecting a 15.3% year-over-year increase [6].