Meta's Q2 revenue increased 28% to $60.8 billion, missing guidance and profit expectations.

ChainCatcher report: Meta released its second-quarter 2026 financial results, reporting revenue of $60.8 billion, a 28% year-over-year increase, slightly above the market expectation of $60.3 billion; net profit of $15.85 billion, a 14% year-over-year decline; and earnings per share of $6.18, down 13% year-over-year. Advertising revenue reached $59.36 billion, up 27% year-over-year, with ad impressions up 14% and average ad prices up 12%. Operating profit fell 8% year-over-year to $18.78 billion, with the operating margin declining from 43% to 31%. Total costs and expenses surged 55% year-over-year to $42 billion, including $2.4 billion in legal litigation expenses and $1.18 billion in workforce reduction costs. For the third quarter, revenue guidance is set at $61 billion to $64 billion, with a midpoint of $62.5 billion, below the market expectation of $63.2 billion. Full-year capital expenditure guidance has been adjusted from $125 billion to $145 billion to $130 billion to $145 billion. Free cash flow amounted to only $784 million, a significant year-over-year decline and the lowest level in nearly four years. Meta also narrowed its full-year 2026 expense guidance to $165 billion to $169 billion, while maintaining its expectation that operating profit will exceed 2025 levels. Zuckerberg stated, “AI is accelerating our core business, and the results are already evident.” Following the earnings release, Meta’s stock dropped more than 10% in after-hours trading.