Microsoft Q2 2026: $130 billion new data center leases, Azure revenue $39.3 billion

In the second quarter of 2026, Microsoft added over $130 billion in new data center lease contracts. As of June 30, the company's total commitment for lease contracts not yet commenced stood at $329.1 billion, up from $196.6 billion in the previous quarter. Microsoft's chief executive said the company is on track to roughly double its data center capacity within two years, activating 31 new data centers in the quarter and 88 in the fiscal year ending June.

In the second quarter, Microsoft's total revenue rose 18% year-on-year to $90 billion, with Azure intelligent cloud revenue growing 32% to $39.3 billion. Net profit increased 31% year-on-year to $35.8 billion, including a $3.2 billion gain from its stake in Anthropic. Capital expenditure reached $41 billion, up 70% year-on-year, with roughly two-thirds allocated to short-term assets such as semiconductors and the remainder to data center buildings and other long-term infrastructure.

Microsoft maintained its full-year 2026 capital expenditure guidance, lowering the annual figure from $190 billion to $175 billion due to an accounting adjustment. OpenAI contributed $24.1 billion in revenue to Microsoft over the past year, accounting for about 7% of the company's total revenue. As of the end of the quarter, Microsoft's contract backlog for future revenue rose to $678 billion, an increase of $51 billion from the previous quarter. This figure does not include commitments from frontier labs such as OpenAI and Anthropic.