Microsoft has launched its largest-ever share buyback program, authorizing repurchases of up to $60 billion. Alongside this, the company has also increased its quarterly dividend by 10%, signaling strong financial health and a commitment to delivering value to its shareholders. These strategic financial moves were approved by the company's board of directors during a recent meeting.

The tech giant's annual shareholders meeting is scheduled for December 10, where the focus is expected to be on its continued investments in artificial intelligence (AI). Earlier this year, Microsoft pledged to enhance its investment in AI infrastructure, a move that led to a significant increase in capital spending for the quarter ending June 30. Despite experiencing a recent slowdown in Azure cloud service growth, the company forecasts a rebound in the second half of fiscal year 2025.

Investors are keeping a close eye on how major players like Microsoft and Google manage their substantial AI expenditures. Microsoft's openness in discussing AI's impact on its quarterly results offers valuable insights into how these investments are influencing its overall performance.

In a strategic shift earlier this year, Microsoft combined its search and news advertising revenues into the Azure cloud-computing unit, highlighting the growing importance of AI within its business operations. The company's stock has risen nearly 15% this year, and the share price experienced a slight uptick in aftermarket trading following the buyback announcement.

Microsoft is also enhancing its generative AI package by introducing new features. These include automated agents, improved Copilot assistant capabilities, and collaboration solutions aimed at boosting productivity. Additionally, Microsoft has rolled out a program that automatically organizes email inboxes and summarizes correspondence, further demonstrating its commitment to AI-driven innovation.