Microsoft Expects Positive Cash Flow Through 2027 Amid Massive Data-Center Commitments

Microsoft (MSFT) reported its quarterly results after market close on July 29 and shared positive outlooks for cash flow and capital expenditures. The tech giant expects to maintain a positive cash flow through fiscal year 2027, which is in line with previous expectations. However, Microsoft's capex guidance has been adjusted downwards due to an accounting change, indicating that the company will invest less than initially anticipated.

The $329.1 billion unstarted data-center lease pipeline remains the largest among its peers, according to Reuters. This massive commitment is tied to recognized lease liabilities of approximately $88.52 billion. The sheer scale of these commitments highlights Microsoft's ambitious growth plans and its willingness to invest in infrastructure to support them.