Microsoft’s Azure revenue milestone and $678 billion backlog contrast with Meta’s EPS miss due to AI infrastructure spending.
Meta reported a 27% year-over-year increase in ad revenue to $60.37 billion but missed earnings per share estimates at $6.18, down from the $7.2173 consensus. Operating margins fell to 31% from 43%, pressured by a $2.4 billion legal charge and $1.18 billion in severance costs tied to an 8,000-employee layoff.
Microsoft’s Intelligent Cloud segment grew 32% to $39.31 billion, with Azure revenue crossing $100 billion annually for the first time. The company’s commercial backlog surged 84% to $678 billion, signaling strong contracted AI demand. EPS beat estimates at $4.74, an 11.81% upside over the $4.2397 forecast.
Both companies reported on July 29, 2026, but Wall Street reacted differently, favoring Microsoft’s execution and backlog growth over Meta’s AI investment phase.