Quick Read – Microsoft’s capex consumed nearly half its operating cash flow in FY25 while AAPL spent just 4% and gained 42% as MSFT fell 24%. – Apple authorized a $100 billion buyback while Services hit a record $31 billion quarterly, proving its capital-light model compounds…
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Microsoft (NASDAQ:MSFT) is the stock every cloud bull and AI evangelist keeps pointing at, drawn by an AI business that just crossed a $37 billion annual run rate and Azure growth holding at 40%. But here’s what you should actually be watching. The Capex Furnace Nobody Wants to Price Microsoft just spent $30.88 billion on capital expenditures in a single quarter, up 84.39% year over year.
Full-year FY25 capex hit $64.55 billion, versus $20.62 billion in FY21. Capex now consumes 47.4% of operating cash flow, up from 26.9% four years ago. And the punchline retirement investors keep missing: free cash flow actually declined 3.32% in FY25 while revenue grew.