Meta Platforms vs. Microsoft: What Recent Revenue Trends Tell Investors About These Artificial Intelligence Companies
Key Points
Microsoft currently generates substantially higher total revenue than Meta Platforms in each reported period.
Both companies have steadily increased their quarter-over-quarter revenue over the last eight periods, though Meta Platforms exhibits more pronounced seasonal dips in the first calendar quarter of each year.
Investors should watch whether the total revenue gap between the two companies continues to widen in upcoming quarters.
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Meta Platforms: Navigating Seasonal Revenue Swings
Meta Platforms (NASDAQ:META) primarily earns revenue by connecting people globally through its widely used digital communication applications, including Facebook, Instagram, and WhatsApp, while also developing virtual reality hardware and software.
While it executed a global workforce reduction affecting approximately 8,000 employees and announced a data center venture with BlackRock to support infrastructure workloads, it reported a 26% net income margin for the quarter ended June 30, 2026.
Microsoft: Steady Upward Revenue Progression
Microsoft (NASDAQ:MSFT) generates revenue by providing essential productivity tools for enterprises, managing sophisticated cloud computing infrastructure, and selling personal computing experiences that include software licenses, operating systems, and video game consoles.
It eliminated about 4,800 operational roles and faced new investigations from the UK's Competition and Markets Authority. It recorded a 40% net income margin for the quarter ended June 30, 2026.
Why Revenue Matters to Retail Investors
Revenue serves as a baseline indicator of how much total money a business brings in before any expenses are deducted. It reveals whether a corporation is successfully attracting customers and growing its overall business volume over time.
Quarterly Revenue for Meta Platforms and Microsoft
| Quarter (Period End) | Meta Platforms Revenue | Microsoft Revenue |
|---|---|---|
| Q3 2024 (Sept. 2024) | $40.6 billion | $65.6 billion |
| Q4 2024 (Dec. 2024) | $48.4 billion | $69.6 billion |
| Q1 2025 (March 2025) | $42.3 billion | $70.1 billion |
| Q2 2025 (June 2025) | $47.5 billion | $76.4 billion |
| Q3 2025 (Sept. 2025) | $51.2 billion | $77.7 billion |
| Q4 2025 (Dec. 2025) | $59.9 billion | $81.3 billion |
| Q1 2026 (March 2026) | $56.3 billion | $82.9 billion |
| Q2 2026 (June 2026) | $60.8 billion | $90.0 billion |
Data source: Company filings. Data as of July 30, 2026.
Foolish Take
A comparison of revenue trends between tech titans Meta Platforms and Microsoft provides interesting insights. Both are enjoying strong year-over-year sales growth, pointing to the success of their businesses. Yet after reporting earnings results recently, Meta’s stock price sank while Microsoft’s took off. Getting the full story behind this requires digging into metrics beyond sales.
Meta produces the bulk of its revenue from advertising, and the seasonal nature of the ad industry explains why the social media giant’s sales spike in Q4. Although its revenue growth demonstrates a healthy advertising business, Meta’s stock price fell because it’s investing heavily into artificial intelligence infrastructure.
The Facebook parent revealed it’s pursuing new revenue by selling access to its AI. However, to support its AI ambitions, the company spent over $31 billion in second-quarter capital expenditures, nearly double the prior year’s capex. This contributed to Q2 diluted earnings per share (EPS) dropping to $6.18 from $7.14 in 2025, which led to Meta stock’s sell-off.
Microsoft’s consistent quarter-over-quarter growth is impressive, and a testament to the massive demand it’s experiencing for its offerings. The company is also spending heavily in AI infrastructure, but its stock rose after earnings because diluted EPS hit $4.81 in its fiscal fourth quarter ended June 30, up from $3.65 in the previous year. Its ability to invest in AI yet continue to grow profits was viewed favorably by Wall Street.
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Robert Izquierdo has positions in BlackRock, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends BlackRock, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
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