Microsoft shares fell 25% in Q1 2026—its steepest quarterly loss since 2008—after guiding to $37.5 billion（約6兆円） in quarterly capital expenditures and signaling slower Azure growth, despite strong reported results.

What happened: Microsoft's stock declined about 25% during the first quarter of 2026, the company's worst quarterly performance since the fourth quarter of 2008, and the worst among the Magnificent Seven stocks. The company reported strong quarterly results but guided to quarterly capital expenditures of $37.5 billion（約6兆円）, a 66% increase to fund its AI data-center buildout. Azure, Microsoft's cloud-computing business, showed modest deceleration for the first time in years.

Why it matters: Heavy AI infrastructure spending signals Microsoft is committing substantial resources to compete in the generative AI race, but the market interpreted the sharp capex increase and Azure's slowdown as signs of mounting competitive pressure. The fund noted that Microsoft reshuffled its AI leadership team to better innovate on Copilot adoption, which has reached 450 million users but has lagged expectations, the vast majority on the free tier.

What to watch: On June 15, 2026, Microsoft closed at $399.76 per share with a market capitalization of $2.97 trillion（約480兆円）. Over the past 52 weeks, shares lost 17.61%. The company's ability to convert free Copilot users into paid customers and demonstrate a return on its massive capex investment will be critical to investor sentiment.