Microsoft Unveils $60 Billion Share Buyback Program and 10% Quarterly Dividend Increase to $0.83 per Share

On Monday, Microsoft announced that its board had approved a new $60 billion share buyback program. The tech giant also declared a quarterly dividend of $0.83 per share, marking an 8-cent, or 10%, increase from the previous quarter. The annual shareholders meeting is set for December 10.

In July, Microsoft revealed plans to significantly increase spending on AI infrastructure this fiscal year. Capital expenditures rose 77.6% for the quarter ending June 30, primarily driven by AI-related costs.

While the Azure cloud business reported slower growth in the recent quarter, Microsoft expects acceleration in the second half of fiscal 2025. The company faces pressure from investors to demonstrate returns on its substantial AI investments, a trend observed across major tech firms, including Alphabet's Google.

Microsoft distinguishes itself by detailing AI contributions in its quarterly earnings reports, unlike many firms still awaiting significant gains from AI. Last month, Microsoft restructured its reporting, incorporating some search and news advertising revenue into its Azure cloud division.

In comparison, Apple announced a record $110 billion share buyback program in May following strong quarterly results. Microsoft’s shares saw a slight increase in after-hours trading and have risen approximately 15% this year.