MSFT vs META: Which Tech Stock Is the Better Buy Ahead of Earnings?

Tech giants Microsoft (MSFT) and Meta Platforms (META) are set to report their quarterly earnings on January 28, and investors are debating which 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 34%, compared with about 24% for Meta. While both face scrutiny over rising AI spending, analysts favor MSFT for its stability and consistency.

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 Q2 Earnings

Wall Street expects Microsoft to post Q2 FY26 earnings of $3.91 per share, up 21% from a year ago, with revenue projected to rise roughly 15% to $80.28 billion.

Investors will be watching closely to see whether Microsoft’s AI spending and cloud push are paying off. The focus will be on Azure’s growth, especially whether AI demand is bringing in new revenue or just replacing existing workloads. Notably, the company expects 37% revenue growth for Azure in fiscal Q2, slowing from 40% growth in the prior quarter. In addition, early traction and monetization of tools like Copilot and other enterprise AI products could also signal stronger long-term productivity and growth.

Wall Street’s View on MSFT

Overall, analysts remain bullish on Microsoft stock but are trimming price targets ahead of the earnings report. Recently, UBS five-star analyst Karl Keirstead cut his price target to $600 from $650 while keeping a Buy rating. Meanwhile, Cantor Fitzgerald’s Thomas Blakey reaffirmed a Buy rating but lowered his price target to $590 from $639. Analysts say software valuations are easing across the sector, and the lower targets reflect softer investor sentiment rather than any major concerns about Microsoft’s January 28 earnings results.       

On the other hand, Morgan Stanley’s Keith Weiss maintained his price target of $650 with a Buy rating on MSFT stock. He said that if Microsoft can consistently beat earnings expectations and raise guidance, it should help lift the stock’s valuation over time. At current levels, Weiss added, Microsoft shares do not fully reflect the company’s long-term growth potential.

Overall, MSFT has 32 Buys and two Holds from analysts with an average price target of $626.14.

What to Expect from Meta’s Q4 Earnings

For Meta, Wall Street expects Q4 2025 earnings of $8.19 per share, up from $8.02 a year ago. Revenue is projected to rise 20.8% year-over-year to around $58.35 billion.

Investors will be watching Meta’s AI initiatives and heavy investments, which are pressuring margins in the near term. While these efforts may not drive big gains in 2026, they should eventually pay off through new and growing revenue streams. Overall, AI spending may weigh on Meta’s margins in the short term, but profits should keep growing, and another earnings beat next week looks likely.

Wall Street’s Take on META

Similar to Microsoft, Wall Street analysts are trimming Meta’s price targets ahead of earnings. Recently, Wells Fargo’s four-star-rated analyst Ken Gawrelski cut Meta’s price target to $754 from $795 but maintained a Buy rating. He noted that higher AI investment is pushing costs up into 2028, creating a short-term gap before new products arrive.

Among the bulls, Jefferies analyst Brent Thill named Meta a Top Pick, saying the 18% drop since the company’s Q3 earnings report creates an attractive buying opportunity. He noted the selloff reflects concerns around margin pressure, heavy capital spending, and AI execution. However, Thill believes Meta can overcome these challenges, leaving meaningful upside if sentiment improves.

META stock carries 37 Buys, 6 Holds, and one Sell rating from analysts with an average price target of $820.21.