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Research Alert: Msft Beats Mar-q; Azure Grows An Impressive 40%

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

MSFT posted Mar-Q revenue of $82.9B (+18% vs. our 16% forecast) with EPS of $4.27 beating the $4.06 expectation, driven by continued cloud and AI momentum. AI-related revenue reached $37B annual run rate (+123% Y/Y), while Microsoft Cloud generated $54.5B (+29% vs. our 28% view) with Azure growing 40% vs. our 38% forecast. The exceptional commercial RPO surge of 99% Y/Y to $627B provides revenue visibility and reflects robust enterprise demand for multi-year cloud contracts. We expect the company to provide guidance on its earnings call. Operating margins expanded to 46.3% from 45.7%, demonstrating MSFT's ability to drive operational leverage as its cloud business scales. The Productivity segment delivered $35.0B (+17% vs. our 15% forecast), while More Personal Computing declined only 1% vs. our -6% expectation. We believe the strong AI monetization and cloud growth trajectory, combined with expanding margins, reinforces MSFT's competitive positioning in the enterprise market.

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