Microsoft shares dip on $25B bond plan despite Azure growth

Microsoft shares fell Thursday despite strong quarterly results, as investors weighed a planned $25 billion US bond issuance and lower-than-expected capital expenditures. The stock declined even though revenue rose 19% year-over-year to $92.28 billion, with adjusted earnings per share of $4.89 beating analyst estimates of $4.71. Azure cloud revenue grew 48%, exceeding the 44.3% market forecast, with CFO Amy Hood projecting 49% growth next quarter. However, capital expenditures of $45.2 billion missed the $51 billion expectation due to third-party capacity delivery delays, though management guided spending above $50 billion for the next quarter. The bond sale plan drew attention as free cash flow fell to $18.6 billion from $25.7 billion a year earlier, though it beat Wall Street's $7.99 billion estimate. Microsoft also offered voluntary severance packages to 60,000 employees, while its devices and consumer segment declined 3% amid weak Xbox, Windows, and PC demand.