Microsoft Boosts Dividend as AI Spending Surges

Microsoft's quarterly dividend has been raised by 8% to $0.98 per share, marking its 24th consecutive annual increase.

The company's fiscal fourth-quarter results showed strength across core business lines, with revenue of $90 billion, up 18% year over year, and operating income of $40.6 billion, up 18%.

A significant aspect of Microsoft's financials is its planned capital expenditures of approximately $175 billion for calendar 2026 on AI infrastructure, indicating aggressive spending while still raising the payout.

The company's commercial backlog surged 84% to $678 billion at the end of June, an increase that provides visibility into future revenue and reduces the risk of overextension due to the AI spending cycle.