Microsoft and Meta Report Mixed Earnings as AI Spending Surges

In late July 2026, Microsoft and Meta reported their quarterly earnings, showing contrasting results. Microsoft's profit jumped 31% to $133.7 billion for the fiscal year, with Azure cloud sales surpassing $100 billion and strong cloud growth. The company also signed $130 billion in data center leases to meet AI demand. Meta, however, saw a 14% drop in profit as its AI spending climbed to $145 billion, disappointing investors with a weak outlook.