By Stephen Morris
Publication Date: 2026-01-28 21:24:00
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Microsoft shares fell as investors were spooked by a 66 per cent surge in data centre spending and slower than expected cloud growth, despite strong demand for AI services boosting profits by almost a quarter.
Quarterly adjusted net income rose 23 per cent year on year to $30.9bn in the three months to the end of December, beating analysts’ expectations for $28.9bn. Revenue increased 17 per cent to $81.3bn, exceeding estimates of $80.3bn.
Shares of the Redmond, Washington-based group were 5.1 per cent lower in after-hours trading as another big jump in AI-related spending soured the market reaction to these record profit and revenue figures.
Capital expenditure, including finance leases, was $37.5bn in the quarter, an increase from $34.9bn in the prior three months and up from $22.6bn in the same period last year.
Previously, Microsoft had forecast almost…