Microsoft shares advanced in early trading as the company signaled that artificial intelligence investments will continue to generate cash during its newly started fiscal 2027.
The software giant also provided a capital expenditure forecast below market expectations, easing concerns about the sustainability of its massive infrastructure spending.
Azure revenue surged 43% year-over-year, reinforcing the strength of Microsoft's core business even as it scales its AI ambitions.
The positive reception followed the company's fiscal fourth-quarter results, which highlighted accelerating momentum in its cloud-computing division.
Azure revenue surged 43% year-over-year, reinforcing the strength of Microsoft's core business even as it scales its AI ambitions.
Investors have been closely watching Microsoft's capital allocation strategy, particularly given the enormous costs associated with building out AI infrastructure.
The company's assurance that AI initiatives will remain cash-generative, combined with a more moderate capex outlook, appears to have alleviated some of the pressure on the stock.