Microsoft announced a major new share buyback program worth up to $60 billion, marking a significant move to return value to shareholders. The company also declared a quarterly dividend of $0.83 per share, which represents a 10% increase from the previous quarter’s $0.75 dividend.
The decision, approved by Microsoft’s board on Monday, reflects the company’s strong financial position and commitment to enhancing shareholder returns. The tech giant’s stock saw a modest rise in aftermarket trading following the announcement, with shares up about 15% year-to-date.
In addition to the buyback and dividend news, Microsoft revealed plans to hold its annual shareholders meeting on December 10. The company has been heavily investing in artificial intelligence (AI) infrastructure, which led to a 77.6% increase in capital spending for the quarter ending June 30. Despite a recent slowdown in growth for its Azure cloud business, Microsoft projects an acceleration in growth for the second half of fiscal 2025.
The increased focus on AI is part of a broader trend among major tech companies, including Alphabet’s Google, as they face pressure from investors to demonstrate tangible returns on substantial AI investments. Microsoft is relatively unique among large tech firms in breaking out AI contributions in its earnings reports, offering more transparency into the impact of its AI expenditures.
Last month, Microsoft also restructured its reporting format, reallocating some search and news advertising revenue to the Azure cloud-computing unit. This restructuring aims to better reflect the financial performance and synergies across its various business segments.
In comparison, Apple recently announced a record $110 billion share buyback program in May, highlighting the broader trend of tech giants leveraging their financial strength to reward shareholders.
With these latest moves, Microsoft continues to navigate the evolving tech landscape while balancing investment in emerging technologies with shareholder interests.
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