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Microsoft posts 18% revenue growth but investor caution rises over US$35 billion AI cap-ex
Microsoft beats earnings expectations but heavy AI-related cap-ex raises investor questions about future return on investment.
Microsoft Corporation delivered strong Q3 fiscal 2025 results: revenue rose 18% to US$77.7 billion, and profit jumped 22% to US$30.8 billion. Its cloud division Azure grew approximately 40%, surpassing estimates. However, Microsoft also revealed record capital expenditure of nearly US$35 billion focused on AI and data centre build-out, prompting investor concerns about return on heavy spending. Despite the strong figures the shares dipped over 3% after hours. :contentReference[oaicite:5]{index=5}