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Meta reports Q2 revenue of $60.8 billion as profit misses and spending surge hits shares

Meta reports Q2 revenue of $60.8 billion as profit misses and spending surge hits shares

A 91% drop in free cash flow, higher AI data-center spending and legal risks overshadowed strong ad growth, as Meta lifted its annual capital expenditure range and shares slid in after-hours trading.

Fact Check
Meta's official Q2 2026 press release (PR Newswire and Meta Investor Relations) confirms revenue of $60.80B, matching the claimed $60.8B exactly. The same source confirms FY2026 capex was narrowed to $130-145B from the prior $125-145B, precisely matching 'raises capex floor to $130 billion.' The Yahoo Finance article corroborates that advertising revenue topped estimates and shares fell about 8% after results, driven by increased capital spending and AI data center investment. The only minor inconsistency is that the Yahoo article states the new capex range as $135-145B, but Meta's authoritative primary source states $130-145B, which supports the claim. All material elements of the claim are verified by primary sources.
Summary

Meta Platforms posted second-quarter revenue of $60.8 billion, but heavy spending on artificial intelligence infrastructure, legal charges and severance costs weighed on earnings and cash generation, sending the shares sharply lower in after-hours trading. Earnings per share came in at $6.18, below consensus estimates, while free cash flow fell 91% to $784 million from $8.55 billion a year earlier as the company ramped up investment in AI data centers. Meta raised its full-year capital expenditure guidance to $125 billion to $145 billion from $115 billion to $135 billion, underscoring Mark Zuckerberg’s commitment to sustained AI spending even as investors question the near-term payoff. Revenue still rose 28% from a year earlier, daily active users across Meta’s apps increased 3% to 3.6 billion, and the company said its core advertising business remains strong. The spending push comes as Meta faces comparisons with its costly metaverse bet, while also managing mounting legal exposure after disclosing that four U.S. states are seeking $1.4 trillion in penalties related to claims that Facebook and Instagram fostered addictive use among teens and misled the public about platform safety.

Terms & Concepts
  • free cash flow: Cash remaining after operating expenses and capital spending, used to assess how much financial flexibility a company has.
  • capital expenditure: Money a company spends on long-term assets such as data centers, equipment and infrastructure.
  • AI data centers: Facilities packed with computing and networking hardware used to train and run artificial intelligence systems at scale.