NASDAQ

Yahoo Finance @YahooFinance · 2026-07-25

Microsoft Earnings Preview: Get Ready for Soaring AI Spending to Sink MSFT Stock

Although Microsoft stock looks historically cheap, concerns about massive AI spending could overshadow strong earnings and send shares lower.

Quick take

Microsoft is expected to report a significant increase in capital expenditures for fiscal 2027, reaching $262 billion, driven by AI spending. Analysts predict 18% revenue growth for the year, but investors may react negatively, as seen with Alphabet's recent earnings report. Microsoft's stock has fallen 24.6% in the past year.

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