According to CoinMeta, a report released by China Merchants Securities International indicates that Microsoft's revenue in the first fiscal quarter of 2027 reached $92.3 billion, a year-on-year increase of 19% and a quarter-on-quarter increase of 3%, which is about 2% higher than market expectations. The net profit was $36.6 billion, a year-on-year increase of 32%, including $207 million in OpenAI investment income. In the same period last year, there was a loss of $3.1 billion. The operating profit margin reached 49.8%, up 0.9 percentage points year-on-year, mainly due to the release of operational leverage. Capital expenditure amounted to $45.2 billion, a 10% increase from $41 billion in the previous quarter, but it was about 11% lower than market expectations, mainly due to delays in the delivery of third-party computing power and data centers. Management expects capital expenditure in the second quarter of 2027 to exceed $50 billion and anticipates further acceleration in the second half of the year. Although operating cash flow increased by 29% year-on-year to $58 billion, free cash flow still decreased by 27% year-on-year to $18.6 billion. The company expects to maintain positive free cash flow throughout 2027. The firm maintains its "overweight" rating on Microsoft with a target price of $640, believing that Microsoft has leading AI commercialization capabilities, and its accelerated Azure growth and continued positive free cash flow constitute significant advantages over its peers.