🇺🇸Microsoft (MSFT) recorded $45.2 billion in fiscal-Q1 capital expenditure, including finance leases; fiscal-Q2 guidance exceeds $50 billion.

Microsoft’s fiscal first quarter of 2027, covering the period through September 2026, included $45.2 billion in capital expenditure including assets acquired through finance leases, reportedly up 30%. The earnings messages separately report $39.37 billion in capital expenditure and distinguish that figure from the lease-inclusive total.

The chief financial officer said approximately 75% of capital expenditure went toward short-lived assets, principally CPUs and GPUs, including higher memory and storage costs. Management also attributed spending below first-quarter guidance to postponed deliveries of third-party capacity, rather than presenting it as a reduction in infrastructure requirements.

For fiscal Q2, management forecast capital expenditure above $50 billion and approximately $170 billion for the calendar year. The CFO said spending would accelerate in the fiscal second half, partly because third-party capacity originally expected in the first half had shifted into that period.

Microsoft reported $18.6 billion in first-quarter free cash flow. Management’s expectation of remaining free-cash-flow positive in fiscal 2027 and its statement that it would use additional funding sources when attractive are forward-looking statements, not completed financing transactions.