Investors await Q4 results to assess $190 billion AI capex and Copilot adoption amid stock decline.
Microsoft reports fiscal fourth-quarter earnings on July 29 after market close, with investors focused on its $190 billion capital expenditure plan for AI infrastructure. The stock has fallen nearly 20% this year amid concerns over AI spending and slow adoption of its Copilot digital assistant, which has 20 million paid enterprise seats despite 450 million Microsoft 365 subscribers.
Analysts expect the earnings call with CEO Satya Nadella to address traction for Copilot and the resilience of Microsoft 365 against AI-driven alternatives. Prior guidance highlighted elevated capex, but results may clarify whether spending translates into growth.
Shares could rebound if the report eases doubts about AI strategy execution and enterprise demand.