Microsoft CFO: Capital Expenditure Expected to Accelerate in the Second Half of Fiscal Year 2027, with Annual Capital Expenditure of Approximately $170 Billion
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Microsoft's Chief Financial Officer Amy Hood revealed during the Q1 FY2027 earnings call on Wednesday that capital expenditure in the second quarter is expected to exceed $50 billion, with an estimated annual capital expenditure of approximately $170 billion. Affected by delays in third-party capacity, capital expenditure will accelerate in the second half of this fiscal year, primarily directed towards CPUs (including higher memory and storage costs), GPUs, and delayed third-party capacity deliveries. Microsoft is enhancing infrastructure efficiency to generate higher revenue and returns from each capital expenditure in the future. Given its strong business performance, Microsoft expects to maintain positive free cash flow in fiscal year 2027 and will seek additional financing channels when appropriate to supplement cash flow and maintain financial flexibility.