Tech giants Microsoft and Meta have reported surprisingly strong earnings for the first quarter of 2025, providing a much-needed boost to investors amid ongoing market turbulence. Both companies showed resilience despite the challenges posed by the trade policies of former President Donald Trump.
Meta, which owns Facebook and Instagram, announced a net profit of $16.64 billion, translating to $6.43 per share. This marks a significant increase of 35 percent compared to the same period last year. The company’s revenue also rose by 16 percent, reaching $42.31 billion, surpassing Wall Street’s expectations of around $41.4 billion.
Microsoft, on the other hand, reported a net profit of $25.8 billion, or $3.46 per share, which is an 18 percent increase year-on-year. The tech giant’s revenue hit $70.1 billion, up 13 percent from the previous year and exceeding analysts’ forecasts.
Both companies attributed their growth to advancements in artificial intelligence (AI). Meta has integrated AI tools into its advertising services, which is its primary revenue source. Meanwhile, Microsoft highlighted robust growth in its cloud computing sector, driven by AI innovations.
These positive results come at a time when the US tech sector has faced significant challenges. The market value of major tech firms, including Microsoft and Meta, dropped by 24 percent, or $4.2 trillion, in the first 100 days following Trump’s inauguration. His administration’s tariffs, particularly a steep 145 percent duty on China, have disrupted business operations and created uncertainty among investors.
The US economy also showed signs of strain, contracting by 0.3 percent in the first quarter of 2025. This has raised concerns about a potential recession later in the year. In light of these economic challenges, Meta’s CEO Mark Zuckerberg expressed confidence in the company’s ability to handle the current market conditions. He also announced the launch of a new AI app, MetaAI, and outlined plans for significant capital expenditure in the coming year to enhance their data centers.
These results from Microsoft and Meta, along with Alphabet’s recent report of $90.23 billion in quarterly revenue, indicate a hopeful outlook for the tech industry, even as it grapples with external pressures.