Microsoft (NASDAQ: MSFT) generated about $18.63 billion under DFB’s cash-capex free-cash-flow calculation in its fiscal 2027 first quarter, ended September 30, 2026—down about 27% from a year earlier. DFB defines this measure as operating cash flow minus cash additions to property and equipment. The comparison uses reported figures before rounding for presentation.
Cash dividends paid were about $6.76 billion, or roughly 36% of that measure. This comparison does not account for every competing use of cash: the amount left after dividends is not necessarily available for discretionary spending.
Finance-lease principal also sits outside this cash-capex measure. Microsoft separately reported $1.0 billion of financing cash outflows from finance leases. Deducting that principal would produce a different analytical measure; lease interest already included in operating cash flow should not be deducted again.
The next quarter will provide another comparison. For now, these figures describe one period—not a forecast of future dividends. Keeping cash capital spending, lease principal and distributions separate makes the change easier to interpret.
Sources: Microsoft Form 10-Q, quarter ended September 30, 2026 · Microsoft FY2027 Q1 earnings release.
Structural research, not investment advice.