Microsoft Allocates $37.5B CapEx, $29.9B on AI Infrastructure Equipment
Microsoft posted adjusted EPS of $4.14, up 24% year-over-year, on sales of $81.3 billion, up 17%. The company spent $37.5 billion in CapEx—$29.9 billion on equipment for AI and cloud—while its Intelligent Cloud revenue grew 28% to $32.9 billion despite margin pressure.
1. Double-beating earnings performance
In the latest quarter, Microsoft delivered adjusted EPS of $4.14, a 24% year-over-year increase, and generated $81.3 billion in revenue, a 17% rise over the prior year period, exceeding consensus forecasts for both metrics.
2. AI-driven capital expenditure surge
The company deployed $37.5 billion in capital expenditures during the period, including $29.9 billion for property and equipment such as GPUs and CPUs, signaling a heavy investment in AI and cloud infrastructure.
3. Intelligent Cloud growth and margin impact
Revenue for the Intelligent Cloud segment climbed 28% to $32.9 billion, but its gross margin contracted as AI-related investments increased operational costs and investor attention focuses on a potential Azure growth slowdown.