Quarterly Performance Comparison: Microsoft vs Meta
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 05 2026
0mins
Should l Buy MSFT?
Source: Fool
- Microsoft Cloud Performance: Microsoft reported a 39% growth in its Azure cloud computing segment for Q2, surpassing the management's expectation of 37%, indicating strong demand for AI spending; however, despite this excellent performance, the stock fell by about 10%, presenting a potential buying opportunity for investors.
- Meta Capital Expenditure Plans: Meta expects capital expenditures to reach between $115 billion and $135 billion in 2026, a significant increase from $72.2 billion in 2025, raising market concerns about over-leveraging towards AI; however, management reassured that they expect operating income in 2026 to exceed that of 2025, alleviating some market fears.
- Revenue Growth Comparison: Meta's revenue grew by 22% in Q4, reflecting the effectiveness of its generative AI investments, while Microsoft's overall revenue growth was 17%; although both companies performed well, Meta's faster growth may attract more investor interest.
- Valuation Analysis: Microsoft has a forward P/E ratio of 26, slightly higher than Meta's 24, and while the difference is minimal, considering Meta's faster growth and relatively cheaper valuation, investors may lean towards Meta, although Microsoft's long-term growth potential remains strong.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 369.370
Low
500.00
Averages
631.36
High
678.00
Current: 369.370
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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