Revenue Trends Highlight Meta Platforms' Volatility vs Microsoft’s Stability
Meta Platforms (META) reported a net income margin of 26% for Q2 2026, with revenue reaching $60.8 billion as it continues to invest heavily in AI infrastructure and workforce reductions. Despite strong sales growth, Meta's stock price declined due to increased capital expenditures—$31 billion in the second quarter—and a drop in diluted earnings per share (EPS) from $7.14 to $6.18 year-over-year. In contrast, Microsoft (MSFT) posted a 40% net income margin and revenue of $90.0 billion for Q2 2026, with consistent quarter-over-quarter growth driven by enterprise tools and cloud services. Although it also cut jobs and faced regulatory scrutiny in the UK, its stock rose after reporting higher diluted EPS from $3.65 to $4.81 year-over-year. The differing market reactions underscore how revenue alone does not dictate investor sentiment—Meta’s heavy AI spending weighed on earnings while Microsoft managed growth without sacrificing profitability.
Topics: Meta Platforms Microsoft revenue workforce reduction