Meta reported revenue of $60.8 billion for the second quarter of 2026, up 28% year over year and slightly above the market expectation of $60.3 billion. Net income came in at $15.85 billion, down 14% from a year earlier, while earnings per share fell 13% to $6.18. Advertising revenue reached $59.36 billion, with ad impressions up 14% and average price per ad rising 12%.
The company’s operating profit dropped 8% to $18.78 billion, and its operating margin narrowed from 43% to 31%. Total costs and expenses surged 55% to $42 billion, including $2.4 billion in legal expenses and $1.18 billion related to layoffs. Meta guided third-quarter revenue to between $61 billion and $64 billion, with a midpoint of $62.5 billion, below the market expectation of $63.2 billion.
Meta also raised the low end of its full-year capital expenditure outlook to $130 billion from $125 billion, keeping the high end at $145 billion. Free cash flow fell to $784 million, hitting a nearly four-year low. CEO Mark Zuckerberg said AI is accelerating the company’s core business and that results are already starting to show.
Meta reported second-quarter 2026 revenue of $60.8 billion, up 28% from a year earlier and slightly above the market expectation of $60.3 billion.
Net income was $15.85 billion, down 14% year over year. Earnings per share came in at $6.18, a 13% decline from the same period last year.
Advertising revenue continued to rise
Advertising revenue reached $59.36 billion, up 27% year over year. Ad impressions increased 14%, while the average price per ad rose 12%.
Margins narrowed as costs jumped
Operating profit fell 8% to $18.78 billion. Operating margin dropped to 31% from 43%.
Total costs and expenses surged 55% to $42 billion. That figure included $2.4 billion in legal litigation expenses and $1.18 billion in layoff-related charges.
Third-quarter guidance missed market expectations
Meta guided third-quarter revenue to a range of $61 billion to $64 billion. The midpoint of $62.5 billion was below the market expectation of $63.2 billion.
The company also revised its full-year capital expenditure guidance from $125 billion-$145 billion to $130 billion-$145 billion. Meta narrowed its full-year 2026 expense guidance to $165 billion-$169 billion and kept its expectation that operating profit would be higher than in 2025.
Free cash flow fell to a nearly four-year low
Free cash flow totaled just $784 million, a sharp year-over-year decline and the lowest level in nearly four years.
CEO Mark Zuckerberg said, "AI is accelerating the core business, and the results are already starting to show." After the earnings release, Meta shares were at one point down more than 10% in after-hours trading.
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