US Stock Market Move | Microsoft Corporation (MSFT.US) fell more than 4% as capital expenditures slowed down and intense competition in the cloud business.

On Thursday, Microsoft Corporation (MSFT.US) fell more than 4%, closing at $405.97. In terms of news, in the third quarter of the 2026 fiscal year, Microsoft Corporation's overall sales revenue and profit growth were stronger than Wall Street expectations, but capital expenditure lagged behind. According to the financial report, in the third quarter of the 2026 fiscal year, Microsoft Corporation's total revenue was approximately $82.886 billion, an 18% year-on-year increase, significantly higher than Wall Street's consensus expectations. The latest operating profit was about $38.398 billion, a 20% year-on-year increase; net profit was $31.778 billion, a 23% year-on-year increase; diluted EPS was $4.27, a 23% year-on-year increase. However, in this quarter, Microsoft Corporation's capital expenditure growth significantly slowed down, with a year-on-year growth rate slowing from 66% in the previous quarter to 49%, while analysts had expected growth of around 65%. Some analysts commented that this indicates that Microsoft Corporation's capital investment pace is not as fast as the market expected. In addition, Microsoft Corporation's Azure cloud service revenue grew by 40% year-on-year, slightly exceeding expectations. In comparison, Alphabet Inc. Class C announced that its cloud revenue grew by 63% year-on-year on the same day, far exceeding market expectations, highlighting Microsoft Corporation's facing more intense competition in the cloud business growth momentum.