Microsoft reported its fiscal 2026 (year ended June 30) results, with revenue up 18% to $331.8 billion and net income up 31% to $133.7 billion. However, its market capitalization, currently around $3.59 trillion, is about 4.5% lower than a year ago. The article attributes this to the market paying a lower multiple for earnings (P/E ratio dropped from 37x to 27x) and concerns over high capital expenditures, which reached $115.9 billion in fiscal 2026 (up 80%) and are projected to hit $175 billion in calendar 2026, exceeding last year's operating income.