Technology group: Microsoft invests more and increases profit at the same time - stock rises
Microsoft delights investors: Despite continued rising spending on data centers, the cash flow remains positive - unlike the competition. The stock rises by four percent after the market closes.
In the autumn of 2026, central questions in Silicon Valley revolve around the excessive spending of technology giants on artificial intelligence (AI) and the sustainability of this investment pace. Microsoft CEO Satya Nadella confirmed this trend during a Wednesday briefing, affirming that the company will continue investing heavily.
Microsoft plans to invest over 50 billion dollars in the upcoming quarter, with a staggering 170 billion dollars earmarked for the current fiscal year of 2027. Financial Chief Amy Hood explained that demand continues to outstrip supply, and the company anticipates a surge in investment expenses for the second half of the fiscal year, primarily due to advanced chips (CPUs and GPUs).
However, these investments do not signal a profit decline for Microsoft. The net profit grew from 27.7 billion dollars in the previous year's period to 36.6 billion dollars in the most recent quarter. In contrast, Google experienced a drop in net profit.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Technology Group: Microsoft starts strongly into the new fiscal year handelsblatt.com
