Microsoft Guides FY2027 Capex Growth, Q1 Spend Over $50B as AI Buildout Continues
MSFT sits 21% above its 52-week low of $349.2.
Summary
Microsoft just guided for FY2027 capex to grow year-over-year, with Q1 alone expected to exceed $50 billion. That follows FY26 capex of $115.9 billion, nearly double the prior year, and puts calendar 2026 capex at approximately $175 billion. The spending is tied directly to AI infrastructure, and management paired it with an outlook for accelerating Azure growth in the first half of FY27. Revenue is expected to grow double-digits for the full year, with Q1 guided to $89.85–$90.95 billion. Free cash flow is expected to remain positive despite the massive investment. This is the first concrete forward capex number since the blowout Q4 report, and it signals that Microsoft is not slowing its AI buildout. The scale of spending will be a key debate for investors weighing near-term margin pressure against long-term cloud and AI revenue acceleration.
At the time of this announcement, MSFT was trading at $421.27 on NASDAQ in the Technology sector, with a market capitalization of approximately $2.9T. The 52-week trading range was $349.20 to $555.45. This news item was assessed with neutral market sentiment and an importance score of 9 out of 10. Source: Reuters.