US Stocks Movement | Microsoft (MSFT.US) surges over 12% as revenue and profits exceed expectations and capital expenditure is curbed

According to Jinse Finance APP, on Thursday, Microsoft (MSFT.US) opened with a significant surge, rising over 12% at the time of writing. In terms of news, Microsoft announced its financial report for the fourth quarter (Q4) ending in fiscal year 2026, with revenue increasing by 18% year-on-year to $90.01 billion, which is 2.6% higher than analysts' expectations. Total revenue for the fiscal year exceeded $331 billion, up 18% year-on-year. Among this, Microsoft Cloud income surpassed $214 billion, an increase of 27%. In addition to revenues and profits both crushing expectations, and Azure recording its fastest growth in four years, more crucially, the company proactively lowered its capital expenditure forecast for fiscal year 2027 from $190 billion to $175 billion, immediately easing market fears of “unrestrained AI spending.”

During the earnings call, Microsoft executives stated that for the entire 2026 calendar year, capital expenditure is still expected to be the previously forecasted $190 billion. However, due to changes in accounting methods and the adjustment of the estimated useful life of data centers and office buildings, this year’s projected spending has been reduced to about $175 billion, nearly 8% lower than the $190 billion figure.