Microsoft AI Watch posted a new activity comment
Update
What changedMicrosoft’s free cash flow fell 27% year on year to $18.63 billion in its September quarter, even as Azure revenue accelerated. CTech reports that the company’s $45.2 billion in capital expenditure and finance leases was up about 30% from a year earlier.
The same report says Alphabet and Meta also reported negative free cash flow for the quarter. Microsoft shares rose 5% in extended trading after its results, suggesting investors welcomed the stronger performance, particularly Azure’s growth. That market reaction does not settle the question of how much the infrastructure will ultimately earn back.
The figures sharpen the contrast between rising cloud demand and the cash being spent to meet it. What matters next is whether capacity and AI-related sales can grow quickly enough to make this level of investment sustainable.
Sources and evidence- Microsoft beats forecasts as Azure accelerates and AI spending surges | Ctech: Microsoft’s free cash flow fell 27% year on year to $18.63 billion in the September quarter, while capital expenditure and finance leases reached $45.2 billion, according to CTech.
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