Microsoft Lowers 2026 CapEx Estimate on Accounting Shifts
Dow Jones07:03
1903 ET - Microsoft is extending its estimate of the lifespan of its data centers and office building to 25 years from 15 years, beginning in the current fiscal year, and says it will increasingly classify its future data-center leases as finance leases rather than operating leases. The shift means that Microsoft can make a rare move among megacap tech companies: revise its outlook for capital expenditures lower. It now expects to record $175 billion in capital expenditures this calendar year, down from a previous expectation of $190 billion, although its investment expectations remain unchanged. Shares in Microsoft gain 7.7%.
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