# Meta Platforms (META) Q2 2026 earnings

Results filed 2026-07-29 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/meta/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/1326801/000162828026050596/0001628280-26-050596-index.htm
> 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.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Revenue | $60.80 billion | up 28% year-over-year | GAAP |
| Net income | $15,848 | down 14% from a year ago | GAAP |
| Diluted EPS | $6.18 | down 13% from a year ago | GAAP |
| Income from operations | $18,775 | down 8% from a year ago | GAAP |
| Operating margin | 31% | down from 43% a year ago | GAAP |
| Cash flow from operating activities | $31.86 billion |  | GAAP |
| Free cash flow | $784 million |  | non-GAAP |
| Capital expenditures, including principal payments on finance leases | $31.08 billion |  |  |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Family daily active people (June 2026 average) | 3.60 billion | up 3% year-over-year |
| Ad impressions | 14% | increase year-over-year |
| Average price per ad | 12% | increase year-over-year |
| Advertising revenue | $59,363 | 27% GAAP growth year-over-year |
| Family of Apps revenue | 60,370 |  |
| Reality Labs revenue | 431 |  |
| Family of Apps income from operations | $23,394 |  |
| Reality Labs loss from operations | (4,619) |  |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Total revenue | third quarter 2026 | $61-64 billion |
| Foreign currency headwind to year-over-year total revenue growth | third quarter 2026 | approximately 1% |
| Total expenses | full year 2026 | $165-169 billion |
| Capital expenditures, including principal payments on finance leases | 2026 | $130-145 billion |
| Tax rate | remaining quarters of 2026 | 15-17% |
| Operating income versus 2025 | 2026 | above 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.

## 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.

## Slides and investor documents

- [Earnings Slides](https://s21.q4cdn.com/399680738/files/doc_financials/2026/q2/Earnings-Presentation-Q2-2026.pdf) (Slide deck)
- [Earnings Call Transcript](https://s21.q4cdn.com/399680738/files/doc_financials/2026/q2/META-Q2-2026-Earnings-Call-Transcript.pdf) (Company's official transcript)
- [Follow Up Call Transcript](https://s21.q4cdn.com/399680738/files/doc_financials/2026/q2/META-Q2-2026-Follow-Up-Call-Transcript.pdf) (Company's official transcript)
- [Webcast](https://events.q4inc.com/attendee/922331606) (Webcast replay)
- [Form 10-Q](https://d18rn0p25nwr6d.cloudfront.net/CIK-0001326801/abad2059-196d-46e3-8534-cab5756a1926.pdf) (Document)