The 2025 Q4 earnings season is underway, with the S&P 500 reporting solid growth in both earnings and sales. However, beats percentages are lower than usual, leading to mixed post-earnings reactions. Meta Platforms saw its shares rise, while Microsoft faced a tough day, lagging behind the S&P 500 over the past five years.

Microsoft’s earnings were strong, with adjusted EPS growing by 24% and sales increasing by 17% year-over-year. Despite impressive growth, investors were concerned about high capital expenditures, particularly for cloud and AI investments. Azure growth also slowed, impacting the stock’s performance post-earnings.

Meta Platforms also posted strong earnings, with adjusted EPS up 11% and sales increasing by 24% year-over-year. The company is investing heavily in AI and infrastructure, with a focus on expanding its user base and ad revenue. META stock has outperformed the S&P 500 year-to-date.

Investors are closely watching the performance of tech giants like Microsoft and Meta Platforms after their recent earnings reports. While Meta saw positive share reactions, Microsoft faced challenges due to high capital expenditures and Azure growth deceleration. The contrasting outcomes highlight the importance of company strategies and market expectations.

Read more at Nasdaq: Meta Pops and Microsoft Drops: A Closer Look