#MSFTCapexOnPaper

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About MSFTCapexOnPaper

Starting FY2027, Microsoft will extend the estimated useful life of data centers and office buildings from 15 to 25 years, saying it reflects actual operating history. More leases shift from finance leases (in capex) to operating leases (not counted). Together they cut the CY2026 capex guide from about $190B to $175B. Strip out the effect and the plan is unchanged: $15B off the books, not a dollar less. Q4 capex plus finance leases hit $41B, up 69% YoY. Longer depreciation, longer payback wait.