Core Viewpoint - The report from CMB International highlights Microsoft's strong performance in Q4, with revenue and net profit exceeding expectations, driven by growth in cloud services and operational efficiency [1] Financial Performance - Microsoft's Q4 revenue reached $76.4 billion, representing an 18.1% year-on-year growth, surpassing both CMB International's and market consensus estimates by 3.6% and 3.5% respectively [1] - Net profit increased by 23.6% year-on-year to $27.2 billion, exceeding CMB International's and market consensus estimates by 9% and 8% respectively [1] Business Segments - All three major business segments outperformed expectations, with the core infrastructure business experiencing accelerated growth driven by large clients [1] - Azure and other cloud services revenue grew by 39% year-on-year in Q4, outperforming the previous guidance of 34% to 35% [1] Future Projections - CMB International has raised its revenue and operating profit forecasts for Microsoft for 2026 to 2027 by 2% to 4% and 3% respectively, reflecting the stronger-than-expected growth in cloud services and productivity and business processes (PBP) [1] - The discounted cash flow (DCF) target price has been increased by 18%, from $510.3 to $601.5, corresponding to projected P/E ratios of 38.8 and 33.6 for the fiscal years 2026 and 2027 [1] - The rating remains "Buy" based on the potential for profit growth and improved cash flow generation capabilities [1]