Microsoft set to report earnings after the close

Microsoft is set to unveil its fiscal fourth-quarter earnings after the market closes on Wednesday. Analysts expect the tech giant to report an impressive 14% increase in year-over-year revenue, following last year's figure of $64.73 billion. This growth comes as Microsoft, the second-largest company globally by market capitalization, accelerates its investments to enhance data center capabilities, a response to the surging demand for artificial intelligence operations. According to estimates from Visible Alpha, Microsoft is projected to allocate approximately $100.5 billion in capital expenditures for its 2026 fiscal year, which concludes in June. This represents a significant 14% increase. In a similar vein, Alphabet recently raised its 2025 capital spending forecast by $10 billion, now totaling $85 billion. Investors are closely monitoring Microsoft's Azure cloud computing division, which continues to grow as businesses transition from traditional data centers. Analysts from StreetAccount predict Azure's growth to range between 34.4% and 35.3%, building on a 33% growth reported in the previous quarter. During the last quarter, Microsoft celebrated its 50th anniversary while navigating a challenging landscape that included laying off over 6,000 employees and launching a new GitHub feature designed to streamline coding tasks with the Copilot assistant. Additionally, LinkedIn's CEO, Ryan Roslansky, has taken on expanded responsibilities to oversee Office productivity applications. Shares of Microsoft have surged approximately 22% in 2025, significantly outpacing the S&P 500’s 8% gain during the same timeframe. Following the earnings announcement, executives will engage with analysts in a conference call scheduled for 5:30 p.m. ET.