Microsoft Doubles Q2 Capex to $29.9B as RPO Hits $625B
Microsoft ramped up Q2 FY2026 capital expenditures to $29.88 billion, nearly double year-ago levels, while its Remaining Performance Obligations reached $625 billion. With quarterly revenue of $81.27 billion, Microsoft’s diversified cash flow base provides a substantial buffer against potential delays in AI infrastructure build-outs.
1. Capital Expenditures Surge
Microsoft’s Q2 FY2026 capital expenditures reached $29.88 billion, nearly doubling year-over-year as the company accelerates data center and AI infrastructure investments to support growing demand.
2. RPO and Revenue Cushion
Remaining Performance Obligations climbed to $625 billion, reflecting committed but unrecognized revenue, while quarterly revenue of $81.27 billion provides a robust cash flow cushion against project timing risks.
3. Resilience Against Infrastructure Delays
Microsoft’s diversified enterprise and cloud services portfolio gives it a strategic advantage in absorbing potential power and construction delays, unlike peers whose revenues are concentrated in single large data center projects.