MSFT vs. META: Which ‘Magnificent 7’ Strong Buy Stock Is the Better Buy Ahead of April 29 Earnings?

Tech giants Microsoft (MSFT) and Meta Platforms (META) are both set to report their quarterly results after the closing bell on Wednesday, April 29. As the market prepares for these high-stakes updates, investors are debating which “Magnificent Seven” stock looks more attractive. Both carry Strong Buy ratings from Wall Street ahead of the reports. However, analysts see more upside in Microsoft, with potential gains of 35%, compared with about 24% for Meta. While both face scrutiny over rising AI spending, analysts favor MSFT for its diversified revenue and the steady growth of its Azure cloud business.

Using TipRanks’ Stock Comparison tool, we stacked MSFT against META across multiple metrics—including analyst sentiment, upside potential, valuation, and earnings momentum—to help investors see which stock looks more attractive ahead of earnings.

Let’s dig deeper.

What Analysts Expect from Microsoft’s Q3 Earnings

Wall Street expects Microsoft to post Q3 FY26 earnings of $4.05 per share, up 17% from a year ago, with revenue expected to rise roughly 16% to $81.37 billion.

Investors will be watching closely to see whether Microsoft’s massive AI infrastructure spending is translating into bottom-line profits. The primary focus remains on Azure’s growth. While Azure grew 39% last quarter, management has guided for a slight slowdown to 37%–38% in Q3. Analysts will look for signs that AI use is spreading, especially through wider adoption of Copilot and Azure Foundry tools. Any beat on cloud margins—which have been under pressure due to heavy AI investments—could help lift the stock on Wednesday.

Wall Street’s Views on MSFT

Overall, analysts remain bullish on Microsoft stock but are trimming price targets ahead of the earnings report. Recently, TD Cowen analyst J. Derrick Wood lowered his price target on Microsoft to $540 from $610, while maintaining a Buy rating. He expects limited upside from Azure, with growth likely to remain steady due to GPU capacity being directed toward internal AI development. At the same time, he sees some improvement in Microsoft 365, especially from Copilot adoption. Wood also noted that rising capital spending and steady Azure growth could keep the stock range-bound in the near term.

Meanwhile, Robert W. Baird analyst William Power lowered his price target on Microsoft to $500 from $540, while maintaining an Outperform rating. He noted that sentiment has turned somewhat cautious due to concerns around Microsoft’s software exposure and rising competition in AI, especially around Copilot. Still, Power remains positive heading into the upcoming earnings report. He believes the stock remains attractive given steady Copilot adoption, strong enterprise position, and expanding AI opportunities.

Overall, MSFT has 35 Buys and three Holds from analysts with an average price target of $571.29.

What to Expect from Meta’s Q1 Earnings

For Meta, Wall Street expects Q1 2026 earnings of $6.65 per share, up from $6.4 a year ago. Revenue is expected to rise 31% year-over-year to around $55.52 billion.

Investors will be watching closely to see if Meta’s aggressive AI spending is starting to drive meaningful revenue growth. The main area to watch is its ad business and whether tools like Advantage+ are improving pricing and targeting.

While Meta’s revenue grew 30% last quarter, analysts will look for signs that AI-driven engagement on Reels is continuing to keep users on its platforms longer. Margins will also be a key metric to watch, as they have been under pressure from the company’s large infrastructure spend. Any improvement here could help lift the stock after Wednesday’s report.

Wall Street’s Take on META

Wall Street remains upbeat about Meta ahead of earnings. Recently, TD Cowen analyst John Blackledge reiterated a Buy rating on Meta with an $820 price target. The 5-star analyst expects ad revenue growth to pick up, driven by AI-led engagement and better monetization, though margins may come under pressure due to higher AI spending. Investors will be watching for updates on 2026 spending plans, Q2 revenue guidance, and more details on Meta’s new AI model, Muse Spark.

Also, Piper Sandler analyst Thomas Champion reiterated an Overweight rating on Meta with an $880 price target. He highlighted strong ad trends, with pricing growth picking up and impression growth expected to rise from last quarter. He also noted solid ad spend and strong returns for advertisers, supported by better targeting and higher conversion rates, which continue to improve overall ad performance.

META stock carries 39 Buys, 6 Holds, and one Sell rating from analysts with an average price target of $855.46.