Against expectations to spend $190 billion on capital expenditures this calendar year, Microsoft tonight maintained this spending outlook (due to an accounting change, this CapEx guidance is now $175 billion, but, in reality, Microsoft is keeping its AI capex plan the same for this year). The forward-looking problem is worse: BNP Paribas analysts are already penciling in $262 billion of capex for fiscal 2027. The company said they are “primarily” for data centers and some are “subject to certain contractual conditions being met.” However, as we detailed earlier, simply put, until MSFT demonstrates some more tangible progress in AI (Copilot progress, proprietary LLM, proprietary chip, etc. Microsoft will give its sales outlook for the current quarter, its fiscal Q1, as well as details on actual FY2026 CapEx on the conference call with analysts tonight.