Microsoft expects strong cloud business growth, plans record capital spending

Microsoft on Wednesday forecast that sales at its Azure cloud business would beat Wall Street estimates, and the software giant unveiled plans for 2026 capital spending of $190 billion, which also surpassed expectations.

After the forecast, Microsoft shares were even with their close, rebounding from a fall of more than 2% in extended trading after quarterly results showed only a modest increase in cloud revenue growth. Rival Google reported a stronger rise in cloud growth and Alphabet shares surged more than 4% after hours.