Microsoft Reports Q2 Earnings Jan. 28. Is MSFT Stock a Buy Before Then?

Microsoft (MSFT) will release its second-quarter fiscal 2026 financial results on Jan. 28. While the technology giant has been delivering strong financial results with expanding margins, MSFT stock has struggled to gain traction and has recently pulled back.

A major factor weighing on the stock is investor unease around Microsoft’s rising capital expenditures (capex). As the company scales up its artificial intelligence (AI) and cloud infrastructure, concerns have emerged that spending is expanding too aggressively amid broader market fears of an AI investment bubble.

Investors’ worries intensified after Microsoft disclosed Q1 capital expenditures of $34.9 billion, significantly exceeding its prior guidance of $30 billion. Management attributed the increase to surging demand for AI workloads and cloud capacity, especially within the Azure platform.

While elevated capex has made investors cautious,…