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Microsoft (MSFT) is scheduled to report its fourth-quarter fiscal 2026 earnings on July 29. Strong growth in Azure, AI services, and enterprise software is expected to drive another solid quarter. However, soaring AI-related capital expenditures could continue to weigh on the stock.
Investor sentiment toward mega-cap technology companies has become increasingly cautious as AI infrastructure spending accelerates. Although companies argue that these investments are necessary to meet surging demand for AI services, investors remain concerned about the near-term impact on profit margins and, more importantly, how quickly these massive investments will generate meaningful returns.
