In after-hours trading, Microsoft experienced a notable 7% increase in its stock price after CFO Amy Hood expressed optimism regarding capital expenditures for the fiscal year 2027. Hood highlighted 'demand signals across our portfolio,' which reflects the company's confidence in its growth trajectory.
For the fourth quarter, Microsoft reported capital expenditures and finance leases totaling $41 billion, marking a substantial 69% increase. Looking ahead to 2026, the company plans to extend the useful life of its office and data center buildings from 15 years to 25 years, which is expected to impact its financial strategy.
Additionally, Hood mentioned that more future data center leases will transition from finance leases to operating leases, contributing to an estimated $175 billion in capital expenditures. This strategic shift is likely to enhance Microsoft's financial flexibility and operational efficiency, making it an important development for investors to monitor