[Sinolink Computer & Technology] Microsoft 2026Q4: Azure AI Accelerates Commercialization, Capital Expenditure Continues to Expand

English summary

[# Cloud business grows rapidly, AI revenue continues to be released] Microsoft FY2026Q4 achieved revenue of approximately $90B, up 18% YoY, and adjusted EPS of $4.74, both beating market expectations. Microsoft Cloud revenue reached $59.3B, up 27% YoY; among which Azure and other cloud services revenue grew 43% YoY, and full-year Azure revenue exceeded $100B for the first time. Driven by AI workload growth, Azure continues to be the company's core growth engine. The company stated that AI demand still significantly exceeds computing supply, with data centers, GPUs, power, and network infrastructure being the main constraints. [# Increasing AI infrastructure investment] Microsoft Q4 capex was approximately $41B, up 70% YoY, continuing to increase investment in AI data centers, GPU servers, and network infrastructure. Due to high AI infrastructure investment, quarterly free cash flow was approximately $19.6B, down 23% YoY.