Microsoft is set to report earnings after the bell, and all eyes are on its spending plans
📰 source: cnbc_topnews · 💼 business
microsoft reports fiscal q4 results after the bell wednesday. analysts expect $4.24 adjusted eps and $87.62b in revenue, up 14.6% year over year. investors are focused on spending plans, especially capital expenditures for data centers. azure growth is seen at about 40% constant currency. the stock has fallen 19% in 2026, compared to an 8.5% gain in the s&p 500. concerns include concentration risk from the openai relationship, as 45% of microsoft's $625b in commercial performance obligations are tied to openai. ceo satya nadella is balancing computing capacity between azure, research, and copilot. analysts expect microsoft to raise its capex forecast above the $190b guided in april, after alphabet boosted its own outlook by $15b last week. during the quarter, microsoft launched a cost-efficient ai coding model, appointed a new linkedin ceo, and cut xbox game pass prices. earnings call is at 5:30 p.m. et.
why it matters: microsoft's earnings will reveal if its massive ai spending is justified, especially after alphabet's capex increase and azure growth targets.
source: cnbc_topnews
sentiment: +0.10 · impact: 0.70