On Wednesday after the US market closes, Microsoft and Meta Platforms will report quarterly results, putting two of the biggest AI winners under the spotlight. Beyond revenue and earnings, investors will focus on one key question: are massive AI investments already paying off, or are capital expenditures still growing faster than returns?
For Microsoft, analysts expect revenue of USD 87.7 billion and earnings per share of USD 4.25. Azure and Microsoft's expanding AI business powered by OpenAI are expected to remain the main growth drivers. Investors will closely watch Azure cloud performance, AI adoption and, most importantly, management's outlook on capital spending. Consensus estimates now suggest Microsoft's annual CapEx could reach around USD 190 billion by 2027. The market will be looking for confirmation that these investments continue to generate attractive returns and support long-term profitability.
Meta also faces a pivotal earnings release. Wall Street expects revenue of USD 60.2 billion, earnings per share of USD 7.15, and operating profit of USD 21.5 billion. While the core advertising business remains highly profitable, Reality Labs continues to generate significant losses. The key focus will therefore be whether Mark Zuckerberg maintains Meta's aggressive AI investment strategy. Analysts now expect 2026 capital expenditures of roughly USD 137 billion, and investors want evidence that these investments will translate into stronger revenue and earnings growth over time.
With Microsoft and Meta reporting on the same evening, one of the most important AI events of this earnings season is about to unfold. Investors expecting elevated volatility can position themselves for both upside and downside moves with our Knock-Out Warrants.
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