Microsoft CFO sees calendar-year capital spending of about $170 billion
Microsoft also expects to stay cash flow positive in fiscal 2027.
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Microsoft's chief financial officer said calendar-year capital spending should be about $170 billion. The company expects capital expenditure to speed up in the second half of its fiscal year, as deliveries of third-party capacity shift into that period.
At 6:06 PM Eastern, Microsoft shares were at $551.71 in after-hours trading, up 3.8 per cent.
In the quarter, Microsoft returned $10.2 billion to shareholders through dividends and share repurchases. It beat the earnings forecast, while revenue fell short of expectations.
The spending figure sits against a cost-cutting push inside the company. On October 13, Microsoft's Cloud President asked leaders for 20 per cent savings. On October 26, the company offered buyouts to 60,000 workers. The statement that it expects to stay cash flow positive through fiscal 2027 speaks to the margin question that push raised. It suggests the spending plan is sized not to erode profitability, even as deliveries move later in the year. The timing also fits hardware already disclosed, including production of the Maia 300 starting in 2027. That points to the capacity build proceeding on schedule rather than slowing under expense pressure.
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