Meta, Tesla, and Microsoft.
Three of the largest and most influential companies on the planet reported their earnings yesterday and, as you would expect, all eyes were on them.
META
Meta’s stock jumped more than 10% immediately after the earnings announcement.
And not without reason, since the company beat Wall Street expectations on both revenue and profitability. It was, you could say, a technological statement of “We’re here and we’re moving forward.”
Specifically, revenue increased by 24% year over year, reaching 59.9 billion dollars, while net income rose 9%, hitting 22.8 billion dollars.
To put it simply, Meta generated over 22 billion dollars in profit in a single quarter, despite a 40% increase in expenses compared to last year. Operating margin did fall from 48% to 41%, but it remains an exceptionally strong figure.
This means one thing. Meta’s advertising machine is running at full speed. With 3.58 billion daily active users across its platforms, an 18% increase in ad impressions, and a 6% rise in average ad price, the company is stronger than ever.
What truly stole the spotlight, however, was the announcement of a massive infrastructure investment for 2026, reaching up to 135 billion dollars.
The goal is the development of Meta Superintelligence Labs, the company’s answer to artificial intelligence and the global race for AI dominance.
As Mark Zuckerberg stated, the objective for 2026 is to move toward building “personal superintelligence for everyone.” In other words, an AI model that will know us better than anyone else.
TESLA
Even though vehicle sales dropped, the company managed to do three key things. First, it beat earnings per share expectations, posting 0.50 dollars versus the expected 0.45. Second, it achieved a record in energy storage through Megapacks. Third, it delivered a very optimistic outlook for its two most ambitious projects, Cybercab and Robotaxi.
This month, the removal of safety monitors from robotaxis in Austin began, paving the way for broader expansion of autonomous transportation.
At the same time, the Gen 3 version of the Optimus robot is expected, featuring significant upgrades.
Tesla is evolving into something far bigger than an automotive company. And the market loves this narrative.
MICROSOFT
Microsoft, meanwhile, reported very strong results.
Revenue of 81.27 billion dollars, up 17%.
Earnings per share of 4.14 dollars versus a forecast of 3.91.
Azure growth of 39%.
And yet, the stock fell 12%.
The reason was that Azure growth was “only” 39%, compared to 40% in the previous quarter. Yes, just one percentage point less. That alone was enough to trigger the decline.
In my view, this was an overreaction. Microsoft remains a dominant force in AI infrastructure, with:
17% growth in Microsoft 365 Commercial Cloud,
29% growth in Consumer,
11% growth in LinkedIn,
19% growth in Dynamics 365.
And of course, Nadella stated, “We are only at the beginning of AI adoption, and our AI business is already larger than some of our biggest existing segments.”
So, to sum it up. Meta is making a major leap into AI. Tesla is building the future with robots and autonomous mobility. Microsoft dominates the AI cloud.
