Meta said on July 29 that second-quarter 2026 revenue rose 28% year on year to US$60.8 billion, while net income fell 14% to US$15.85 billion as expenses rose 55%.

Analysts expected US$60.23 billion in revenue and US$7.14 in earnings per share.

The results slightly beat estimates on revenue but missed on earnings per share.

Meta’s third-quarter revenue outlook of US$61 billion to US$64 billion compared with Wall Street’s US$63.17 billion forecast and was near the top of the range.

The higher expenses included US$2.4 billion in legal charges, US$1.18 billion in severance tied to Meta’s May 2026 job cuts, and higher AI costs, including fees for third-party models.

Without the legal and severance items, operating income would have increased 9% year on year.

Meta did not tie the legal charge to a specific settlement, but said it still faced youth-related scrutiny in several markets and had youth-related trials scheduled in the US this year.

Meta said ad impressions rose 14%, average ad prices increased 12%, and family daily active people averaged 3.6 billion in June.

Capital expenditure, including principal payments on finance leases, was US$31.08 billion.

Meta now expects full-year capital expenditure of US$130 billion to US$145 billion as it expands AI infrastructure.

🔗 Source: Meta