Microsoft's fiscal 2026 operating cash flow rose over 34% to $182.9 billion, while Azure revenue climbed 42% to $29.42 billion in Q4. The board declared a $0.98-per-share quarterly dividend, but rising AI and data-center investment could weigh on future free cash flow.
The dividend declaration extended Microsoft's record of payout increases to more than 20 years. The company expects fiscal 2027 capital expenditures to grow year over year as it invests in AI and data-center infrastructure.
The article says Azure lacks enough infrastructure to meet current demand and warns that AI monetization may not deliver planned financial benefits. It also says Microsoft applied usage-based pricing to GitHub Copilot in 2026 and plans to replace unlimited cloud gaming with monthly usage allowances and the option to buy extra hours.
