Overview
- On Wednesday, Meta reported strong top-line growth with first-half revenue of $117.111 billion and H1 net income of $42.621 billion, while second-quarter revenue rose about 28% to $60.801 billion and diluted EPS missed at $6.18.
- The company lifted its 2026 capital-expenditure floor to a $130 billion–$145 billion range to fund data centers, large AI models and compute capacity for new products.
- Free cash flow plunged roughly 91% year‑over‑year to about $784 million, driven by heavy AI spending and sizable one-time charges including a $2.4 billion legal contingency and $1.18 billion in severance.
- Shares fell about 10% in after‑hours trading after the report, prompted by the cash‑flow collapse and a Q3 revenue midpoint that came in slightly below some analyst expectations.
- Advertising remains the main revenue engine, Reality Labs continues to lose money, and investors worldwide will watch whether Meta can monetize its compute capacity and convert AI investments into durable cash returns.