Overview
- Microsoft reported strong fourth‑quarter results that reassured investors, with revenue near $90 billion and Azure growth accelerating to about 43 percent following the company’s July 30 disclosure.
- The firm said it spent roughly $41 billion on capital expenditures in the quarter, left 2026 calendar capex near $175 billion, expects first‑quarter capex above $50 billion, and projected it will remain free‑cash‑flow positive in fiscal 2027.
- Microsoft 365 Copilot passed 30 million paid users, and executives said new AI capacity is being used quickly, which the company presented as evidence its infrastructure buildout is already producing revenue.
- Markets rewarded that message with a historic one‑day jump in Microsoft’s share value, while other giants such as Meta and Alphabet raised capex forecasts and reported weaker cash flows that left their stocks under pressure.
- Analysts say the sector faces a test because industry AI capex is estimated at roughly $600–$700 billion for 2026, so investors will watch forward guidance, short‑lived asset use, and free‑cash‑flow trends to judge whether spending is sustainable.