[CITIC Preview] Azure & AWS Perform Well, Focus on CSP Investment Opportunities

English summary

[1] Revenue acceleration: Microsoft reported FY2026 Q4, Azure annual revenue exceeded $100 billion for the first time, growth further accelerated to 43%, next quarter guidance growth 45%. AWS grew 37%, operating margin 39%, according to quarterly guidance, AWS will continue to accelerate next quarter. [2] Capital expenditure: Microsoft ensures positive FCF for FY2027, company FY26Q4 CAPEX approx. $41 billion, expects FY27Q1 CAPEX approx. $50 billion. Amazon raised 2026 capex to $220 billion, continues to maintain its previous data center expansion plan, but management noted that data center spending can support 5-6 generations of servers, break-even point for a single server is 2-3 years, capex will be invested according to demand, with stronger discipline. [3] Demand outlook: demand still far exceeds supply. Microsoft disclosed commercial RPO further grew to $678 billion, up 84% yoy.…