Microsoft Outperforms Meta in Earnings Reports
On July 29, 2026, Microsoft (NASDAQ:MSFT) reported strong earnings driven by robust growth in its Azure cloud services and Intelligent Cloud division. Revenue reached $90.01 billion with a year-over-year increase of 17.75%, while Azure alone grew at an impressive rate of 43%. The company also secured $678 billion in contracted backlog, signaling strong future revenue visibility. In contrast, Meta Platforms (NASDAQ:META) reported mixed results despite beating revenue expectations with a 27.96% increase to $60.80 billion. However, its earnings per share fell short of estimates and free cash flow dropped significantly from $8.55 billion to just $784 million due to legal charges and severance costs related to workforce reductions. Investors are now clearly differentiating between the two companies: Microsoft is seen as having a stronger monetization strategy with expanding margins, while Meta faces margin compression and higher capital expenditures.
Topics: AI monetization Azure growth free cash flow decline Meta Microsoft