Microsoft Profit Surges While AI Investments Climb Sharply Microsoft reported a strong financial performance for the last quarter of 2025, delivering a 60% year-over-year increase in net income. Despite the earnings growth, the company’s accelerating investment in artificial intelligence and cloud infrastructure drew cautious reactions from investors. AI and Cloud Drive Capital Spending Capital expenditures rose 66% to $37.5 billion, primarily driven by the expansion of AI da