Meta reported its 2026 second-quarter earnings after the U.S. stock market closed on July 29. The company’s shares fell more than 7% in after-hours trading after earnings per share came in below market expectations.
According to data cited from London Stock Exchange Group (LSEG), Meta posted $60.8 billion in revenue for the quarter, above analysts’ estimate of $60.17 billion. EPS, however, was $6.18, missing the expected $7.22. The report later also cited LSEG data showing analysts had previously expected revenue of $63.15 billion. Meta said that forecast was "based on current exchange rates" and assumed foreign exchange would create an approximately 1% headwind to year-over-year total revenue growth.
Revenue beat one estimate, but EPS drew the market reaction
While quarterly revenue reached $60.8 billion, the stronger focus was on profitability. EPS at $6.18 came in well below the $7.22 analysts had been expecting, and the stock moved sharply lower in after-hours trading.
Attention then shifted to the earnings call. Investors were looking for CEO Mark Zuckerberg to explain how Meta’s AI-related investment could turn into more visible revenue and profit gains.
AI infrastructure spending and the Muse Spark 1.1 rollout
The report said one widely cited reason for the earnings miss was the company’s heavy spending on artificial intelligence research and infrastructure. Earlier in July, Meta introduced the Muse Spark 1.1 model and described it as a strong model with autonomous agent and coding capabilities, underscoring the company’s push in AI.
Alexandr Wang, who leads the AI unit, said Muse Spark 1.1 performs strongly in agentic AI and coding work, while costing less to use than comparable offerings from OpenAI and Anthropic. In the report’s framing, that points to a pricing strategy aimed at expanding Meta’s AI market reach.
Capex range narrows as investors press on AI monetization
Meta narrowed its expected capital expenditure range for this year from $125 billion-$145 billion to $130 billion-$145 billion.
During the earnings call, institutional investors and analysts were expected to direct most questions toward AI monetization. The report said that although Meta has committed substantial capital to open-source models and hardware buildout, investors want management to show when those investments will feed more directly into revenue and profit growth. Management’s forward guidance on future capital spending is also expected to shape how the market values the company’s long-term free cash flow.
After-hours drop exceeds 7%
Meta shares swung sharply in Wednesday’s after-hours session, with losses at one point exceeding 7%, after the weaker-than-expected EPS figure. According to ABMedia’s report, the move reflected how closely the U.S. equity market is scrutinizing large-cap technology companies, especially when profitability falls short of expectations.