Earnings
Home›Earnings›Previews›Microsoft earnings set for July 29, with FY2027 CapEx…
Microsoft earnings set for July 29, with FY2027 CapEx in focus
Investors are expected to look past a projected EPS beat, centering on whether FY2027 capital spending guidance supports Azure growth without further pressuring free cash flow.
Microsoft is scheduled to report fiscal fourth-quarter 2026 earnings on July 29, and the Street expects it to top both top- and bottom-line estimates, according to MarketBeat Ratings. The bigger question for investors, however, is what management signals for capital expenditures in fiscal 2027.
MarketBeat Ratings highlighted that analysts are looking for fiscal 2027 diluted EPS of $4.21, up 15.3% from a year earlier. Even so, the review of spending intensity is central after third-quarter CapEx reached $31.9 billion, up 49% year over year, while free cash flow fell 22% to $15.8 billion.
Because July 29 will mark the end of Microsoft’s fiscal year, the company also needs to provide FY2027 guidance. Analysts expect CapEx growth in the 20% to 30% range, which MarketBeat Ratings says could put spending around $220 billion, a level that would be used to gauge whether the AI buildout looks disciplined rather than excessive.
Azure growth is the other key variable in the setup for the AI spending thesis. Microsoft guidance calls for Azure growth in the 30% to 40% range, and MarketBeat Ratings frames the outcome as a comparison between cloud engine growth and the pace of capital spending, with full-year 2026 revenue projected between $324 billion and $327 billion.