Overview
- Meta reported Q2 results late in July showing $60.8 billion in revenue driven by a roughly 27–28% rise in advertising sales and 3.6 billion average daily users.
- Heavy investment in AI infrastructure drove roughly $31.1 billion in quarterly capital expenditures and pushed free cash flow down 91% to $784 million.
- Meta recorded $3.6 billion in one-time charges for litigation and severance that materially reduced GAAP EPS despite higher operating cash flow.
- Management raised 2026 capex guidance to $130–$145 billion and increased full-year expense guidance to $165–$169 billion, and the stock fell about 8–9% as investors questioned the timing of monetization.
- The company still holds substantial liquid assets and a powerful ad franchise, leaving the core business to fund a long-term AI platform bet that could squeeze margins until new revenue streams appear.