Revenue and profit both look excellent. Free cash flow is where the argument actually lives, and that is the number worth watching on red sessions.

The June quarter brought $90.01 billion of revenue at roughly 18% growth, with adjusted earnings of $4.74 against $4.24 expected. Same quarter, free cash flow fell 23% to $19.64 billion.

The reason is capital spending. FY26 capex hit $115.95 billion, the June quarter alone took $35.80 billion at nearly 110% year-over-year growth, and the finance chief has guided toward roughly $175 billion including finance leases with further growth signalled for FY27. Useful life on buildings was also extended from 15 years to 25.

That accounting change flatters near-term depreciation and does not change the cash going out. Traders noticed.

My short-term $MSFT exposure sits on Bitunix as a perp. It is a derivative product with no dividend attached and no vote, with funding deducted throughout and liquidation risk live on any leverage. Your results may differ.