Microsoft is set to report Q2 earnings, with focus on remaining performance obligations (RPO) of $392 billion. Analysts expect a significant increase due to new commitments, driving cloud revenue growth. However, capacity constraints may limit revenue, leading Microsoft to increase capital expenditures. Expect EPS of $3.92 and revenue of $80.3 billion.

Commercial cloud revenue expected to rise 25% to $51.2 billion, while Productivity and Business Processes may hit $33.6 billion. Intelligent Cloud segment revenue set to climb 26% to $32.2 billion, and More Personal Computing business to bring in $14.3 billion. Microsoft stock up 4% in past year, outpacing Amazon but trailing Google.

Google stock has surged 64% in the last 12 months, driven by Gemini 3 AI model. Microsoft ally OpenAI’s ChatGPT is in competition, but Google’s AI leadership is evident. Microsoft faces strong competition in the cloud market, with Google leading the charge. Watch for Microsoft’s Q2 earnings report for more insights.

Read more at Yahoo Finance: Microsoft to report Q2 earnings with investors eyeing AI growth and spending