Microsoft has announced the approval of a new $60 billion share buyback program, signalling confidence in its financial outlook and commitment to returning value to shareholders.
On Monday, Microsoft stated that its board had approved a fresh share buyback program worth up to $60 billion.
The IT giant announced an 8 cent, or 10%, rise in dividends to $0.83 per share for the current quarter.
On December 10, Microsoft announced that it would host its annual shareholders meeting.
The business said in July that it would allocate additional funds to AI infrastructure in the current fiscal year. For the quarter that ended on June 30, it reported a 77.6% increase in capital investment, mostly attributable to costs associated with AI.
In the reported quarter, the firm reported a decrease in growth at its Azure cloud business; however, growth is expected to pick up speed in the second half of fiscal 2025.
Large IT firms like Microsoft and Alphabet open new tab Google is under pressure from investors to provide a return on the billions of dollars they have been spending on AI technology.
Microsoft is one of the only large corporations that discloses its AI contributions in its quarterly results; most other companies have not yet experienced a significant return on their AI efforts.
