Microsoft and Meta beat revenue estimates but saw mixed earnings results, weighing on tech stocks amid broader market uncertainty.
The Nasdaq fell 1.7% as investors reacted to monetary policy concerns ahead of a heavy earnings day. Microsoft reported EPS of $4.74, above the $4.24 estimate, with revenue at $90.0 billion, up from $87.62 billion expected. Cloud revenue rose 27% year-over-year, though free cash flow dropped 23% to $19.6 billion. Q4 capex hit $41.0 billion, and shares edged up 1% after hours.
Meta’s revenue of $60.8 billion slightly exceeded estimates, but EPS of $6.18 missed the $7.19 forecast. Free cash flow was $784 million, and the company raised its capex guidance to $130-145 billion from $125-145 billion. Shares fell 5% after hours. Qualcomm’s EPS of $2.21 narrowly missed estimates, while revenue of $9.95 billion topped forecasts, but shares plunged 10.4%.
Starbucks and Lam Research outperformed, with Starbucks shares surging 7.6% on strong earnings. ARM Holdings also beat estimates but saw shares decline 9.3%. Qualcomm’s stock is now nearly 50% below its May 26 high of $259.