Microsoft has unveiled a new share buyback program valued at up to USD 60 billion, a bold move to enhance shareholder value. This announcement comes alongside a quarterly dividend increase, with the company declaring USD 0.83 per share, an 8-cent or 10 per cent rise from the previous quarter. The tech giant will also hold its annual shareholders meeting on 10 December.
The company's commitment to expanding its AI infrastructure is evident from its significant capital spending increase. For the quarter ending 30 June, Microsoft reported a 77.6 per cent rise in capital expenditure, driven predominantly by investments in artificial intelligence.
Despite a slowdown in growth for its Azure cloud services during the reported quarter, Microsoft projects a rebound with accelerated growth expected in the latter half of fiscal 2025.
This announcement is part of a broader trend among major tech firms, including Alphabet's Google, facing pressure from investors to demonstrate tangible returns on hefty AI investments. Microsoft distinguishes itself by breaking out AI contributions in its quarterly earnings reports, a practice not yet common among its peers.
The company recently restructured its financial reporting to include some search and news advertising revenue under its Azure cloud unit.
