Microsoft set to report earnings; investors eye capex plans

Published Jul 29, 04:05 PM UTC

Microsoft is scheduled to report fiscal fourth-quarter earnings after the closing bell on Wednesday, with analysts expecting adjusted earnings per share of $4.24 and revenue of $87.62 billion, representing 14.6% year-over-year growth. Investors are particularly focused on whether Microsoft will raise its capital expenditure forecast for data center expansion, following Alphabet's $15 billion increase last week. The company's shares have fallen about 19% in 2026 amid broader market concerns about generative AI disruption and concentration risk tied to its OpenAI relationship, which accounts for roughly 45% of its $625 billion in commercial remaining performance obligations. During the quarter, Microsoft introduced a cost-efficient AI coding model, appointed Dan Shapero as LinkedIn's new CEO, and lowered Xbox Game Pass subscription prices. Analysts are also watching Azure cloud growth, expected at around 40% constant currency. CEO Satya Nadella faces the challenge of balancing computing capacity between Azure cloud services, AI research, and products like Microsoft 365 Copilot.