depreciation

It matters most where capital spending is heavy. A data centre built this year keeps producing depreciation charges for years afterwards, so profit can fall while cash flow holds up, or the reverse. When a company's capital spending jumps, its depreciation line tells you when that spending will start eating reported profit.

Predictions & track record (2)

• Awaiting grading Microsoft's capex outlook came down to $175 billion, and not because it plans to spend lessIn January 2027, score whether Microsoft's calendar 2026 capital spending landed near $175 billion and whether the reclassification left reported capex below the actual increase in spending.
• Awaiting grading Bilello asks: are we in an earnings bubble?Grade after full-year 2026 results: did S&P 500 realized EPS growth come in near the ~24% expectation, or well below?

2 related posts

• Watch Microsoft's capex outlook came down to $175 billion, and not because it plans to spend less Jukan (@jukan05) · 2026-07-29
• Bear Bilello asks: are we in an earnings bubble? Charlie Bilello · 2026-07-14