Meta Platforms posted strong top-line growth in the second quarter of 2026, reporting a 28% year-on-year increase in revenue as its advertising business continued to expand and user engagement remained strong. However, increased spending on artificial intelligence, legal matters, and restructuring led to a decline in quarterly profit.
The company said revenue reached $60.80 billion for the quarter ended June 30, 2026, compared with $47.52 billion in the same period last year.
Meta’s core advertising business continued to deliver robust growth.
Q2 2026 Financial Highlights
- Revenue: $60.80 billion (up 28% YoY)
- Constant-currency revenue growth: 27%
- Net Income: $15.85 billion
- Diluted EPS: $6.18
The company attributed revenue growth to stronger advertiser demand and continued user engagement across its platforms.
Despite higher revenue, profitability came under pressure due to significantly higher operating expenses.
Meta reported:
- Total costs and expenses: $42.03 billion (up 55% YoY)
- Income from operations: $18.78 billion (down 8%)
- Operating margin: 31% (down from 43% last year)
The higher expenses included:
- $2.40 billion in legal-related charges.
- $1.18 billion in severance costs following workforce reductions announced in May 2026.
Commenting on the results, Meta CEO Mark Zuckerberg highlighted artificial intelligence as a major driver of the company’s future growth.
According to Zuckerberg, AI is:
- Enhancing Meta’s core advertising business.
- Powering next-generation products.
- Creating new enterprise opportunities.
The company continues to make substantial investments in AI infrastructure and computing capacity.
Meta reported continued growth across its Family of Apps.
Operational highlights include:
- Family Daily Active People (DAP): 3.60 billion (up 3% YoY)
- Ad impressions: Up 14%
- Average advertising price: Up 12%
The increase reflects healthy engagement across Meta’s social media platforms and improved advertising performance.
Meta continued investing heavily in infrastructure to support AI development.
Key balance sheet highlights:
- Capital expenditure: $31.08 billion
- Cash, cash equivalents & marketable securities: $90.26 billion
- Long-term debt: $83.66 billion
The elevated capital spending reflects ongoing investments in data centers, AI computing, and technology infrastructure.
Meta expects continued revenue growth in the coming quarter.
Q3 2026 Guidance
- Expected revenue: $61 billion to $64 billion
Full-Year 2026 Outlook
- Operating expenses: $165 billion–$169 billion
- Capital expenditure: $130 billion–$145 billion
The company also stated that it continues to expect 2026 operating income to exceed 2025 levels, despite higher investments.
