Meta Platforms Q2 Results and Q3 Outlook
Meta Platforms Inc. posted second‑quarter 2026 results on Wednesday, showing earnings per share of $6.18, which fell short of the consensus estimate of $7.17. Revenue increased 28% year‑over‑year to $60.8 billion, beating the consensus forecast of $60.19 billion. Advertising drove the revenue growth, with ad impressions up 14% and the average price per advertisement rising 12% versus the prior year. Family daily active users grew 3% to 3.60 billion in June.
Total costs and expenses jumped 55% to $42.03 billion. The increase included $2.4 billion of legal charges and $1.18 billion in severance payments linked to the May workforce reduction, as well as higher stock‑based compensation and infrastructure spending. Capital expenditures for the quarter amounted to $31.08 billion, reflecting continued investment in artificial‑intelligence infrastructure.
Free cash flow contracted sharply to $784 million, down from $8.55 billion a year earlier, while the company did not slip into negative free cash flow. The full‑year capital‑expenditure outlook was narrowed to a range of $130 billion‑$145 billion, up from the prior lower bound of $125 billion. The full‑year expense forecast was raised, with the lower end now set at $165 billion‑$169 billion to incorporate the second‑quarter legal costs.
For the third quarter, Meta forecast revenue between $61 billion and $64 billion, below Wall Street’s median expectation of $63.24 billion. The company expects another quarter of solid revenue growth despite the higher expense base.
Chief Executive Mark Zuckerberg said that artificial‑intelligence initiatives are accelerating the core business, powering new products and expanding enterprise opportunities, and that the benefits are already evident. BofA analysts noted that the share‑price decline reflects investor concerns over Meta’s investment direction, while Ryan Lee of Direxion highlighted the cash‑burn and potential ripple effects of Meta’s AI infrastructure spending on the broader semiconductor supply chain.