OpenNashEarnings

Meta Platforms (META) · Internet & Advertising

Meta Platforms Q2 2026 earnings: summary, key numbers & outlook

Results filed 29 Jul 2026 · Quarter ended 30 Jun 2026

Slides (18 pages)Official transcript (PDF) ↗Press release ↗Investor relations ↗

Summaries and transcripts are machine-generated and can contain errors.

In brief

Meta reported Q2 2026 revenue of $60.80 billion, an increase of 28% year-over-year, with net income of $15,848 million and diluted EPS of $6.18.

Meta's revenue grew 28% year-over-year to $60.80 billion, driven by 14% more ad impressions and a 12% higher average price per ad. Costs grew 55% to $42.03 billion, including $2.40 billion of legal charges and $1.18 billion of severance. As a result, income from operations fell 8% to $18,775 million and diluted EPS fell to $6.18 from $7.14. Free cash flow was just $784 million.

Management expects third quarter 2026 revenue of $61-64 billion and full year 2026 expenses of $165-169 billion. It still expects 2026 operating income above 2025. Capital expenditures are guided to $130-145 billion. The main tension is that heavy AI infrastructure spending is squeezing margins and cash flow. Youth-related trials in the U.S. this year may also ultimately result in a material loss.

Slides & documents

Open the slide deck (PDF, 18 pages) ↗

Meta Platforms Q2 2026 slide deck, page 1Meta Platforms Q2 2026 slide deck, page 2Meta Platforms Q2 2026 slide deck, page 3Meta Platforms Q2 2026 slide deck, page 4Meta Platforms Q2 2026 slide deck, page 5Meta Platforms Q2 2026 slide deck, page 6

Showing the first 6 of 18 pages.

From Meta Platforms investor relations

SEC filing

Key numbers

Revenue · GAAP
$60.80 billion

up 28% year-over-year

Net income · GAAP
$15.8B

down 14% from a year ago

Diluted EPS · GAAP
$6.18

down 13% from a year ago

Income from operations · GAAP
$18.8B

down 8% from a year ago

Operating margin · GAAP
31%

down from 43% a year ago

Cash flow from operating activities · GAAP
$31.86 billion

Free cash flow · non-GAAP
$784 million

Capital expenditures, including principal payments on finance leases
$31.08 billion

Segment or metricValueChange
Family daily active people (June 2026 average)3.60 billionup 3% year-over-year
Ad impressions14%increase year-over-year
Average price per ad12%increase year-over-year
Advertising revenue$59,36327% GAAP growth year-over-year
Family of Apps revenue60,370
Reality Labs revenue431
Family of Apps income from operations$23,394
Reality Labs loss from operations(4,619)
Where each number comes from
  • Revenue: “Revenue – Revenue was $60.80 billion, an increase of 28% year-over-year. Revenue on a constant currency basis would have increased by 27% year-over-year.”
  • Net income: “Net income | $15,848 | $18,337 | (14)% Diluted earnings per share (EPS) | $6.18 | $7.14 | (13)%”
  • Diluted EPS: “Net income | $15,848 | $18,337 | (14)% Diluted earnings per share (EPS) | $6.18 | $7.14 | (13)%”
  • Income from operations: “Costs and expenses | 42,026 | 27,075 | 55% Income from operations | $18,775 | $20,441 | (8)% Operating margin | 31% | 43%”
  • Operating margin: “Costs and expenses | 42,026 | 27,075 | 55% Income from operations | $18,775 | $20,441 | (8)% Operating margin | 31% | 43%”
  • Cash flow from operating activities: “Cash flow – Cash flow from operating activities was $31.86 billion, and free cash flow was $784 million.(1)”
  • Free cash flow: “Cash flow – Cash flow from operating activities was $31.86 billion, and free cash flow was $784 million.(1)”
  • Capital expenditures, including principal payments on finance leases: “Capital expenditures – Capital expenditures, including principal payments on finance leases, were $31.08 billion.”
  • Family daily active people (June 2026 average): “Family daily active people (DAP) – DAP was 3.60 billion on average for June 2026, an increase of 3% year-over-year.”
  • Ad impressions: “Ad impressions – Ad impressions delivered across our Family of Apps increased by 14% year-over-year.”
  • Average price per ad: “Average price per ad – Average price per ad increased by 12% year-over-year.”
  • Advertising revenue: “Revenue: Advertising | $59,363 | $46,563 | $114,387 | $87,955 Other revenue | 1,007 | 583 | 1,891 | 1,093 Family of Apps | 60,370 | 47,146”
  • Family of Apps revenue: “Other revenue | 1,007 | 583 | 1,891 | 1,093 Family of Apps | 60,370 | 47,146 | 116,278 | 89,048 Reality Labs | 431 | 370 | 833 | 782”
  • Reality Labs revenue: “Other revenue | 1,007 | 583 | 1,891 | 1,093 Family of Apps | 60,370 | 47,146 | 116,278 | 89,048 Reality Labs | 431 | 370 | 833 | 782”
  • Family of Apps income from operations: “Income (loss) from operations: Family of Apps | $23,394 | $24,971 | $50,294 | $46,736 Reality Labs | (4,619) | (4,530) | (8,647) | (8,739)”
  • Reality Labs loss from operations: “Income (loss) from operations: Family of Apps | $23,394 | $24,971 | $50,294 | $46,736 Reality Labs | (4,619) | (4,530) | (8,647) | (8,739)”

Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.

From the filingQ2 2026vs year agovs last quarter
Revenue$60.8B+28.0%+8.0%
Operating income$18.8B−8.2%−17.9%
Net income$15.8B−13.6%−40.8%
Diluted EPS$6.18−13.4%−40.8%
Free cash flow$1.7B−80.6%−86.8%
Operating margin30.9%−12.1 pts−9.7 pts

Calculated by code from XBRL, not by the model.

Outlook

MetricPeriodOutlook
Total revenuethird quarter 2026$61-64 billion
Foreign currency headwind to year-over-year total revenue growththird quarter 2026approximately 1%
Total expensesfull year 2026$165-169 billion
Capital expenditures, including principal payments on finance leases2026$130-145 billion
Tax rateremaining quarters of 202615-17%
Operating income versus 20252026above 2025 operating income

Key takeaways

  1. Revenue grew 28% on ads volume and price

    Ad impressions increased by 14% and average price per ad increased by 12% year-over-year. Revenue on a constant currency basis would have increased by 27%.

  2. Costs rose 55%, cutting operating margin to 31%

    Total costs and expenses were $42.03 billion, including $2.40 billion of legal charges and $1.18 billion of severance. Operating margin was 31% versus 43% a year ago.

  3. Free cash flow fell to $784 million

    Operating cash flow was $31.86 billion, but capital expenditures were $31.08 billion. Free cash flow was $8,549 million a year earlier.

  4. Balance sheet shifted toward debt-funded AI buildout

    Long-term debt was $83.66 billion as of June 30, 2026, up from $58,744 million at December 31, 2025. The company issued $24,910 million of long-term debt in the quarter and made no share repurchases.

  5. Outlook: higher expenses, narrower capex, legal risk

    Meta guided third quarter 2026 revenue to $61-64 billion and full year expenses to $165-169 billion. It warned that youth-related trials may ultimately result in a material loss.

Charts

Revenue$60.8B+28.0% y/yQ2 2026
Q4 2024: $48.4B (worked out from the annual figure)Q4 ’24$48.4BQ1 2025: $42.3BQ1 ’25$42.3BQ2 2025: $47.5BQ2 ’25$47.5BQ3 2025: $51.2BQ3 ’25$51.2BQ4 2025: $59.9B (worked out from the annual figure)Q4 ’25$59.9BQ1 2026: $56.3BQ1 ’26$56.3BQ2 2026: $60.8BQ2 ’26$60.8BQ3 2026: $64.6BQ3 ’26$64.6B

Fourth quarter worked out from the annual figure.

Data
Q4 2024$48.4B *
Q1 2025$42.3B
Q2 2025$47.5B
Q3 2025$51.2B
Q4 2025$59.9B *
Q1 2026$56.3B
Q2 2026$60.8B
Q3 2026$64.6B
Diluted EPS (GAAP)$6.18−13.4% y/yQ2 2026
Q1 2025: $6.43Q1 ’25$6.43Q2 2025: $7.14Q2 ’25$7.14Q3 2025: $1.05Q3 ’25$1.05Q1 2026: $10.44Q1 ’26$10.44Q2 2026: $6.18Q2 ’26$6.18Q3 2026: $3.83Q3 ’26$3.83
Data
Q1 2025$6.43
Q2 2025$7.14
Q3 2025$1.05
Q1 2026$10.44
Q2 2026$6.18
Q3 2026$3.83

Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.

Operating margin30.9%−12.1 pts y/yQ2 2026
Q4 2024: 48.3%Q4 ’2448.3%Q1 2025: 41.5%Q1 ’2541.5%Q2 2025: 43.0%Q2 ’2543.0%Q3 2025: 40.1%Q3 ’2540.1%Q4 2025: 41.3%Q4 ’2541.3%Q1 2026: 40.6%Q1 ’2640.6%Q2 2026: 30.9%Q2 ’2630.9%Q3 2026: 20.1%Q3 ’2620.1%
Data
Q4 202448.3%
Q1 202541.5%
Q2 202543.0%
Q3 202540.1%
Q4 202541.3%
Q1 202640.6%
Q2 202630.9%
Q3 202620.1%
Free cash flow$1.7B−80.6% y/yQ2 2026
Q4 2024: $13.6BQ4 ’24$13.6BQ1 2025: $11.1BQ1 ’25$11.1BQ2 2025: $9.0BQ2 ’25$9.0BQ3 2025: $11.2BQ3 ’25$11.2BQ4 2025: $14.8BQ4 ’25$14.8BQ1 2026: $13.2BQ1 ’26$13.2BQ2 2026: $1.7BQ2 ’26$1.7BQ3 2026: -$1.2BQ3 ’26-$1.2B
Data
Q4 2024$13.6B
Q1 2025$11.1B
Q2 2025$9.0B
Q3 2025$11.2B
Q4 2025$14.8B
Q1 2026$13.2B
Q2 2026$1.7B
Q3 2026-$1.2B

Operating cash flow minus capital expenditure, from cash flow statements.

Questions

What were Meta's Q2 2026 revenue and EPS?

Revenue was $60.80 billion, up 28% year-over-year (27% in constant currency). Diluted EPS was $6.18, down from $7.14 a year ago.

Why did Meta's operating income fall despite higher revenue?

Total costs and expenses rose 55% to $42.03 billion, including $2.40 billion of legal charges and $1.18 billion of severance from the May 2026 headcount reduction. Income from operations was $18,775 million, down 8%, and operating margin fell to 31% from 43%.

What is Meta's guidance for Q3 2026?

Meta expects third quarter 2026 total revenue of $61-64 billion, assuming foreign currency is an approximately 1% headwind to year-over-year growth. It expects a tax rate of 15-17% for the remaining quarters of 2026.

How much is Meta spending on capital expenditures?

Q2 capital expenditures, including principal payments on finance leases, were $31.08 billion. Meta now expects 2026 capex of $130-145 billion, narrowed from $125-145 billion.

What are the main risks Meta flagged?

Meta cited active legal and regulatory matters, including scrutiny on youth-related issues and several U.S. youth-related trials scheduled this year that may ultimately result in a material loss. Free cash flow of $784 million also shows heavy infrastructure spending is absorbing cash.