Microsoft to Report Q4 Earnings, Investors Eye Returns on AI Investments Amid Rising Capex
Microsoft (MSFT) is scheduled to report its fourth-quarter earnings after the bell on Wednesday. Investors will closely monitor the results for signs of returns on the company's significant AI investments, especially as its shares have declined over 18% since the start of the year. The company is expected to report earnings per share of $4.25 on revenue of $87.7 billion for the quarter. Analysts are particularly focused on Microsoft's aggressive capital expenditure, which is projected to reach $35.2 billion, a 106% year-over-year increase, and its impact on free cash flow. BofA Global Research notes that Microsoft will need to demonstrate Azure cloud growth of 39% to 40% or better to alleviate investor concerns regarding spending.
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