Meta: profit down (-14%). Microsoft: profit rises to 35.8 billion
As well as scrutinising financial performance and the outlook, the market is also closely examining the issue of capital expenditure for AI
Key points
On Wall Street, the wait for Meta and Microsoft’s results – due today, 29 July, after the markets close – is over. The two tech giants are among the key players in the US quarterly results season and, once again, investors’ attention has gone beyond the mere figures for the quarter.
Meta’s figures
Meta’s revenue stood at $60.801 billion (+28%), whilst net profit came in at $15.848 billion (-14% compared with the same period a year ago) Earnings per share (EPS), meanwhile, stood at $6.18 (-13%). These figures exceeded expectations in terms of turnover but fell short in terms of profitability. Analysts had, in fact, forecast revenue of around $60.2 billion and earnings per share of between $7.13 and $7.19.
Meta’s Outlook and Capex
For the third quarter of 2026, Facebook expects total revenue of between $61 billion and $64 billion. This guidance takes into account a negative impact from foreign exchange rates of approximately 1 per cent on year-on-year revenue growth, based on current exchange rates. The group has also revised the lower end of its operating cost estimates upwards to incorporate $2.4 billion in legal costs, which were recognised in the second quarter. Consequently, total expenses for the full financial year 2026 are now expected to be between 165 and 169 billion.
As for investments, however, Meta has narrowed the projected range for capital expenditure (CapEx). The company now estimates investments of between 130 and 145 billion, including the principal instalments on finance leases, compared with the previous forecast of 125–145 billion. This revision implies an increase in the lower limit of the guidance, signalling the company’s intention to maintain a very high level of investment, particularly in artificial intelligence infrastructure. Against this backdrop, the share price reacted negatively in after-hours trading.
Microsoft’s figures
As for Microsoft, the company reported revenue of 90.0 billion dollars, up 18 per cent compared with the same period last year (+17 per cent at constant exchange rates). Net profit stood at $35.8 billion, up 31% in accordance with accounting standards. Earnings per share (EPS), meanwhile, stood at $4.74 on a non-GAAP basis. Wall Street estimates had predicted revenue of around $87.6 billion and earnings per share of $4.24.
