diff --git a/packages/schematics/angular/application/files/common-files/tsconfig.spec.json.template b/packages/schematics/angular/application/files/common-files/tsconfig.spec.json.template
index dae0fe57b3c4..9eadcfa6163b 100644
--- a/packages/schematics/angular/application/files/common-files/tsconfig.spec.json.template
+++ b/packages/schematics/angular/application/files/common-files/tsconfig.spec.json.template
@@ -3,7 +3,6 @@
 {
   "extends": "<%= relativePathToWorkspaceRoot %>/tsconfig.json",
   "compilerOptions": {
-    "outDir": "<%= relativePathToWorkspaceRoot %>/out-tsc/spec",
     "types": [
       "<%= testRunner === 'vitest' ? 'vitest/globals' : 'jasmine' %>"
     ]
diff --git a/packages/schematics/angular/application/index_spec.ts b/packages/schematics/angular/application/index_spec.ts
index 961e4f9d294f..ad2ba04ff348 100644
--- a/packages/schematics/angular/application/index_spec.ts
+++ b/packages/schematics/angular/application/index_spec.ts
@@ -108,7 +108,11 @@ describe('Application Schematic', () => {
   it('should set the right paths in the tsconfig.spec.json', async () => {
     const tree = await schematicRunner.runSchematic('application', defaultOptions, workspaceTree);
 
-    const { extends: _extends } = readJsonFile(tree, '/projects/foo/tsconfig.spec.json');
+    const { compilerOptions, extends: _extends } = readJsonFile(
+      tree,
+      '/projects/foo/tsconfig.spec.json',
+    );
+    expect(compilerOptions.outDir).toBeUndefined();
     expect(_extends).toBe('../../tsconfig.json');
   });