The world’s largest technology companies delivered robust quarterly results, demonstrating sustained revenue growth driven by artificial intelligence (AI) capabilities and cloud infrastructure demand.
Meta Platforms (NASDAQ: META), Alphabet (NASDAQ: GOOGL), and Microsoft (NASDAQ: MSFT) collectively showcased the massive scale of ongoing AI investments, with combined capital expenditures approaching unprecedented levels.
While operational performance remained strong across the board, one-time charges and regulatory fines highlighted the complex operating environment facing Big Tech.
Meta Platforms: Strong Growth Marred by Tax Charge
Meta Platforms reported impressive revenue growth of 26% year on year (YoY) to US$51.2 billion for the quarter ended 30 September 2025, driven by robust advertising demand.
Ad sales hit US$50 billion, with ad impressions increasing 14% and average price per ad rising 10%, reflecting healthy monetization trends.
The company’s Family daily active people reached 3.54 billion, up 8% YoY.
However, net income plummeted 83% to US$2.7 billion – the decline was due to a one-time, non-cash tax charge of US$15.9 billion related to the One Big Beautiful Bill Act – resulting in diluted earnings per share (EPS) of US$1.05.
Excluding this charge, net income would have been US$18.6 billion with diluted EPS of US$7.25.
Operating profit grew 18% to US$20.5 billion, while free cash flow declined 32% to US$10.6 billion, impacted by significantly higher capital expenditures.
Reality Labs lost US$4.4 billion during the quarter, with weaker headset sales weighing on the segment’s performance.
Despite these losses, Meta continues investing heavily in AI and data centers, with full-year capital expenditures (capex) expected to reach US$72 billion.
Meta maintains a solid balance sheet with US$44.5 billion in cash and marketable securities against US$28.8 billion in long-term debt.
Looking ahead, management expects 4Q2025 revenue of US$56 to 59 billion.
Alphabet: Record Revenue Exceeds US$100 Billion
Alphabet achieved a milestone quarter with record revenue of US$102.3 billion, up 16% YoY.
Net income surged 33% to US$35.0 billion, with diluted EPS rising 35% to US$2.87, benefiting from US$10.7 billion in unrealized gains on non-marketable equity securities.
Free cash flow grew 39% to US$24.5 billion despite higher capex.
Growth was broad-based across segments.
Google Services revenue rose 14% to US$87.1 billion, with Search and YouTube ads each growing 15%.
Google Cloud accelerated with 34% growth to US$15.2 billion, driven by AI Infrastructure and Generative AI Solutions.
The company’s Gemini App reached over 650 million monthly active users, while paid subscriptions across Google One and YouTube Premium exceeded 300 million.
Operating income reached US$31.2 billion, which included a US$3.5 billion European Commission fine.
Alphabet declared a quarterly dividend of US$0.21 per share, payable on 15 December 2025.
Management expects 2025 capital expenditures of US$91-93 billion to support growing AI and Cloud customer demand. Google Cloud’s US$155 billion backlog indicates strong future growth potential.
Microsoft: Cloud and AI Drive 18% Revenue Growth
Microsoft delivered strong first-quarter fiscal 2026 (1QFY2026) results with revenue growing 18% YoY to US$77.7 billion.
Operating income surged 24% to US$38.0 billion, demonstrating strong operating leverage.
GAAP diluted earnings per share reached US$3.72, up 13% year on year, while non-GAAP diluted EPS, excluding OpenAI investment impacts, rose 23% to US$4.13.
The performance was driven by Microsoft Cloud, which jumped 26% thanks to strong Azure demand, reflecting growing customer adoption of the company’s differentiated platform.
CEO Satya Nadella emphasized that the company’s cloud and AI infrastructure, combined with Copilots across high-value domains, is driving real-world impact across customer deployments.
However, spending soared 74% on AI infrastructure, which worried investors and sent shares slipping 2% following the results.
Despite the market’s concerns, Microsoft remains committed to capturing the AI opportunity – the new OpenAI deal gives Microsoft a 27% stake, keeping it firmly in the AI game and strengthening its competitive position in generative AI technologies.
CFO Amy Hood noted the company exceeded expectations across revenue, operating income, and earnings per share, delivering a strong start to the fiscal year.
Microsoft continues to increase investments in AI across both capital and talent to capture the massive opportunity from AI-driven transformation.
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