Microsoft’s fiscal 2026 dividend reached $26.4 billion, while AI capex quadrupled to $116 billion, pressuring free cash flow.
Microsoft distributed $6.8 billion in dividends on August 20, 2026, the largest single-day payout among 26 ex-dividend companies. The $0.91 per share dividend totaled $6,757,245,950, dwarfing runner-up Applied Materials’ $420.8 million.
For the fiscal year ended June 30, 2026, Microsoft’s capital expenditures surged to $115.9 billion, up from $64.6 billion a year earlier. Dividends paid rose to $26.4 billion, but AI spending outpaced shareholder returns by 4.5 times. Operating cash flow of $182.9 billion funded the outlays, though free cash flow declined 6.5% year over year.
CFO Amy Hood affirmed free cash flow positivity for FY2027, even as capex may reach $175 billion. Azure revenue crossed $100 billion annually, underscoring Microsoft’s AI-driven growth strategy.