【Industrial Securities Communications】Microsoft and Meta Earnings Review: AI Monetization Continues to Validate, Capital Expenditure Remains High

English summary

#Microsoft: Cloud business exceeded expectations, and is expected to accelerate further. FY26Q4 revenue of $90 billion, +18% YoY; Microsoft Cloud revenue of $59.3 billion, +27% YoY; Azure +43% YoY, higher than market expectations. The company expects FY27Q1 revenue of approximately $90.4 billion, with Azure growth further accelerating to about 45%. Meanwhile, computing supply is expected to remain tight at least through 2026, with strong AI cloud demand. #Microsoft capital expenditure remains high. Quarterly CapEx of approximately $41 billion, with fiscal 2026 expected at approximately $175 billion; although lower than previous expectations of about $190 billion after adjustment, #mainly due to data center leasing accounting and useful life adjustments, not weakening AI construction demand. FY27 CapEx is expected to continue growing, with positive cash flow expected. #Meta: Advertising revenue grew strongly, AI investment continues to increase. Q2 revenue of $60.8 billion, +28% YoY; advertising revenue of $59.4 billion, +27% YoY; ...