Microsoft(US:MSFT) 美股研究社·2025-12-02 11:41Core Viewpoint - Microsoft (MSFT) experienced a 10% drop in stock price following the release of its Q1 FY2026 earnings report, despite a market rebound [1] Group 1: Financial Performance - In Q1 FY2026, Microsoft's total revenue grew by 18.4% year-over-year, slightly up from 18.1% in Q4 FY2025 [7] - Azure cloud services revenue increased by 40% year-over-year, outperforming Google Cloud's 33.5% and AWS's 20.2% growth [7] - The company expects its "Intelligent Cloud" segment to contribute a 2% growth boost in Q2 FY2026, with Azure projected to grow by 37% year-over-year at constant exchange rates [7] Group 2: Capital Expenditure and Cash Flow - Microsoft plans to significantly increase capital expenditures in FY2026, with Q1 capital expenditures reported at $34.9 billion, including $15.5 billion in capital leases [10] - Analysts predict a substantial decline in free cash flow, estimating a reduction of at least $6.5 billion in the next quarter [3][12] - The capital expenditure as a percentage of total revenue rose to 44.9% in Q1 FY2026, up from 30.8% in the previous quarter [10] Group 3: Market Sentiment and Valuation - Analysts maintain a "strong buy" rating for Microsoft, citing sustained AI growth and stable profit margins, despite concerns over excessive capital spending [2][3] - Microsoft's forward P/E ratio stands at 30 times, which is 5% lower than its 5-year average, indicating that the valuation is not overly inflated [2][15] - The recent stock price decline reflects market concerns about capital expenditure expectations and aligns with a broader trend affecting AI-related companies [15]