Microsoft surges 8% as Meta tumbles 10% after sharply contrasting AI earnings

Microsoft (NASDAQ: MSFT) climbed 8% after Wednesday’s closing bell, while Meta Platforms (NASDAQ: META) sank 10%.

Microsoft reported adjusted earnings of $4.74 per share in the fiscal fourth quarter ended June 30, 2026, exceeding LSEG’s $4.24 expectation. Sales totaled $90.01 billion, exceeding the $87.62 billion projection.

Meanwhile, Meta earned $6.18 per share, less than the expected $7.22, despite revenue of $60.80 billion, which above the $60.17 billion projection.

Microsoft increases cloud revenues and maintains AI expenditure consistent till 2026

Microsoft’s total quarterly revenue rose 18% from a year earlier to roughly $90.0 billion. On a constant-currency basis, growth was 17%. Operating profit increased 18% to $40.6 billion.

Microsoft’s GAAP net income rose 31% to $35.77 billion from $27.23 billion the year before. The adjusted net income increased 22% from $28.81 billion to $35.29 billion. GAAP diluted earnings increased from $3.65 to $4.81, a 32% increase from 2025, while adjusted diluted earnings increased by 23% to $4.74, up from $3.86.

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