Microsoft Stock Climbs 5% as AI Spending Undershoots: Is Wall Street Rewarding Restraint?

Microsoft shares rose 4.7% in after-hours trading on Wednesday after the company reported revenue of $92.28 billion, above analysts’ $90.63 billion estimate, and adjusted earnings per share of $4.89 versus a $4.73 estimate. Capital spending was $39.37 billion, below the $45.93 billion estimate, and the stock rose to $555.33 from a $531.01 close. Alphabet spent $51.4 billion in its quarter, and its shares fell 8% after hours. In July, Chief Financial Officer Amy Hood had said spending this quarter would exceed $50 billion and adjusted Microsoft’s 2026 spending figure to about $175 billion after changing lease classifications, while saying the investment plan was unchanged.