Microsoft's $190 Billion AI Bet Faces Earnings Test July 29

Microsoft reports fiscal year 2026 Q4 earnings July 29 after U.S. markets close. The company pledged $190 billion in capital expenditure — about 27% of the $700 billion Big Tech collectively committed to AI, per Bloomberg, matching Alphabet's projected spend. Investors will scrutinize whether Azure cloud revenue growth justifies the hardware depreciation now weighing on Microsoft's income statement.