Software company Microsoft and technology company Meta released their quarterly earnings reports on Wednesday. With $90 billion, Microsoft reported an 18% year-over-year (YoY) increase, while Meta reported a 28% YoY increase with revenue of $60 billion. Meta stocks fall well below expectations, while revenue exceeded expectations.
Microsoft reported $90.0 billion in revenue for the quarter, representing an 18% year-over-year increase (17% in constant currency). Operating income also rose 18% to $40.6 billion, reflecting continued profitability. Meanwhile, net income climbed to $35.8 billion, up 31% on a GAAP basis, while non-GAAP net income reached $35.3 billion, marking a 22% increase from the same period last year.
“We delivered a strong quarter to close out the fiscal year, highlighted by Microsoft Cloud revenue of $59.3 billion, up 27% year-over-year,” said Amy Hood, executive vice president and chief financial officer of Microsoft.
Meanwhile, Meta reported $60.80 billion in revenue, marking a 28% year-over-year increase, or 27% on a constant currency basis. At the same time, total costs and expenses rose to $42.03 billion, up 55% from the previous year. The increase in expenses included $2.40 billion in charges related to legal proceedings and $1.18 billion in severance costs associated with the company’s May 2026 headcount reduction.
“AI is accelerating our core business today, powering our next generation of products, and opening the door to entirely new enterprise opportunities,” said Mark Zuckerberg, Meta founder and CEO. “The results are already showing, and I’m optimistic about the potential ahead.” Furthermore, the official press release read, “We expect third quarter 2026 total revenue to be in the range of $61-64 billion.”
Although Meta beat the earnings expectation, the share price was only $6.18, well below the expected $7.19.
