Overview

• Meta reported Q1 2025 revenue of $42.31 billion (up 16%) and net income of $16.64 billion (up 35%), exceeding analyst expectations.
• Microsoft achieved $70.1 billion in revenue (up 13%) and $25.8 billion in net income (up 18%), marking its best-ever quarterly performance.
• Both companies credited artificial intelligence as a key driver, with Meta leveraging AI in advertising and Microsoft seeing strong AI-related growth in its Azure cloud business.
• Meta raised its 2025 capital expenditure forecast to $64–72 billion to support AI infrastructure but warned of reduced ad spending from Asia-based exporters due to U.S.-China trade tensions.
• Shares of Meta and Microsoft surged 5% and 6%, respectively, as investors reacted positively to their earnings and guidance for continued growth.