Microsoft on Wednesday reported a 60 percent jump in net income for the last quarter of 2025, but spending on artificial intelligence surged, rattling investors. The company said that capital expenditures, which largely consist of the massive build-out for AI and cloud infrastructure, grew by 66 percent to $37.5 billion. Beating expectations, Microsoft posted net income of $38.5 billion on revenue of $81.3 billion for the three months ending December 31. Analysts said that the net income figure was boosted by gains booked from Microsoft's investment in OpenAI. Azure and other cloud services, Microsoft's most closely watched segment, saw revenue surge 39 percent, roughly in line with expectations.