Microsoft shares rose 4.7% in after-hours trading on Wednesday after the company beat forecasts and spent less than Wall Street expected. Capital spending came in at $39.37 billion, against a $45.93 billion estimate.

Elsewhere in Big Tech, investors did the opposite. Alphabet spent $51.4 billion in its quarter, and its shares fell 8% after hours.

Microsoft Beat Forecasts With a Smaller Bill

Revenue reached $92.28 billion, above the $90.63 billion analysts expected. Adjusted earnings per share came in at $4.89, against a $4.73 estimate.

The stock jumped to $555.33 from a $531.01 close, per Yahoo Finance data.

Microsoft Stock Performance. Source: Yahoo Finance

The spending gap stands out. In July, Chief Financial Officer Amy Hood said spending this quarter would top $50 billion, according to BigGo.

That July report sent shares up more than 8% after hours, per Calcalist.

Did Microsoft Really Spend Less?

The answer is not yet clear. In July, Microsoft adjusted its 2026 spending figure to about $175 billion after changing how it classifies leases.

Hood said at the time the change did not alter Microsoft’s plans.

“…there is no change to the actual investment plan”

The earnings call should show whether the lower figure reflects a real pullback or accounting.

Warsh’s Rate Warning Raises the Stakes

The results came hours after Federal Reserve (Fed) Chair Kevin Warsh spoke. He said he is skeptical of the view that rate hikes will not affect AI.

Rates are already hitting the technology sector, he told reporters. Credit spreads, the extra interest lenders demand over safe government debt, have widened too.

That matters for AI builders that borrow. Microsoft was among five tech giants that sold $230 billion in bonds this year. That figure comes from a Bank of Korea report cited by Herald.

Days earlier, BeInCrypto reported investors faced a no-win test for Big Tech, punishing both spending hikes and cuts. On Wednesday, Microsoft shares rose after lower spending.

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