Microsoft Exceeds Earnings Expectations, Meta Misses Profit Forecasts
On July 29, 2026, Microsoft reported quarterly earnings that exceeded both revenue and profit forecasts. The company's free cash flow was $19.6 billion in the quarter, though it marked a 23% decline from the same period last year. Capital expenditures rose sharply to over $40 billion due to increased investments in infrastructure. In contrast, Meta Platforms reported record quarterly sales but missed profit expectations as rising costs negatively impacted its bottom line. Its free cash flow dropped significantly to just $784 million compared to $8.55 billion a year ago. The company also warned that ongoing regulatory scrutiny could affect future results due to active lawsuits related to youth issues. The mixed performance of these two tech giants comes amid broader market pressure on the Magnificent 7, which have underperformed relative to the S&P 500 this year.
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Topics: Earnings Reports Meta Microsoft Tech Sector