Zacks Investment Ideas feature highlights Meta and Microsoft

For Immediate ReleaseChicago, IL – January 27, 2026 – Today, Zacks Investment Ideas feature highlights Meta Platforms META and Microsoft MSFT.Hyperscaler Earnings Preview: Microsoft & Meta PlatformsA major week of earnings results is upon us, with several hyperscalers – Meta Platforms and Microsoft – on the docket. Both stocks have underperformed the S&P 500 by a notable margin over the last three months.While the performance has been visibly weak, some of the downside can likely be attributed to scrutiny of all the AI spend, which has exploded for both over the past year.Expect both companies to spend the majority of their calls discussing the AI outlook, a theme we won’t be getting away from anytime soon.Are Analysts Bullish?Both EPS and sales revisions for META and MSFT haven’t budged much over the last few months, largely reflecting stability. Both are still forecasted to see growth, with META’s earnings expected to be up 1.6% and MSFT expected to see a much stronger 20% growth rate. Concerning sales, MSFT is expected to see 15% higher revenues, whereas META’s revenues are expected to grow 20.7% year-over-year.While analysts haven’t raised their expectations in a clear bullish way, the stability of both EPS and sales revisions for the duo remains a positive takeaway. Negative revisions heading into the release would warrant some caution, which we just haven’t seen over recent months. Keep in mind that MSFT is also currently a Zacks Rank #2 (Buy), with positive revisions for other periods keeping its overall earnings outlook strong.Watch These MetricsAdvertising results are generally the major metric investors watch heavily for META, accounting for the bulk of the tech titan’s revenue. AI implementations have enabled the company to deliver more relevant ads to consumers, boosting performance significantly over recent periods.We expect Meta Platforms to post $56.8 billion in ad revenue, reflecting a sizable 21% jump year-over-year. The company has regularly blown away our consensus expectations on the metric, with the beats growing in size. The YoY growth rate here is also largely in line with recent periods, a key hurdle that investors will be watching.Concerning MSFT, cloud revenue will be a major focus. Its Intelligent Cloud results include Azure, the cloud platform that provides the computing power and infrastructure that AI needs. The buildout and expansion of the platform are the primary drivers behind its large CapEx increases, which are expected to pay off in a big way.Our consensus estimate for MSFT’s Intelligent Cloud revenue stands at $32.4 billion, reflecting a strong 27% YoY improvement. The company has seen an acceleration in the metric, with any further improvement likely to impress investors in a big way.MSFT has strung together three consecutive beats on the metric relative to our expectations.Putting Everything TogetherStability in sales and EPS revisions for both companies positions them well heading into their releases, though investors will certainly be laser-focused on capital expenditures and everything else related to the broader AI frenzy.It’s also worth noting that Microsoft shares have been big-time laggards over the past two years relative to both Meta Platforms and the S&P 500. The performance disparity could easily begin to change post-earnings if MSFT continues its favorable cloud results, with its current Zacks Rank #2 (Buy) also a big tailwind.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Just Released: Zacks Top 10 Stocks for 2026Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. 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