Meta Platforms, Inc.

Q2 total revenue was $60.8 billion, up 28% year over year, and Family of Apps revenue was $60.4 billion, up 28%, with ad revenue of $59.4 billion, up 27% (26% constant currency). Q2 total expenses were $42 billion, up 55%, including $2.4 billion in legal charges and $1.2 billion in severance. GAAP operating income was $18.8 billion, down 8% year over year, with a 31% operating margin; net income was $15.8 billion, or $6.18 per share. Capex, including finance lease principal payments, was $31.1 billion, free cash flow was $784 million, cash and marketable securities were $90.3 billion, and debt was $83.7 billion. For Q3 2026, Meta expects total revenue of $61 billion to $64 billion, with foreign exchange a roughly 1% headwind; full-year 2026 total expenses are expected to be $165 billion to $169 billion, capex to be $130 billion to $145 billion, and the tax rate for remaining quarters to be 15% to 17%.

Mark Zuckerberg framed the quarter as proof that Meta’s AI investments are already paying off in both the core business and new product areas. He emphasized the scale of Meta’s ecosystem, saying 3.6 billion people use at least one app daily, and pointed to milestones like Instagram at 2 billion daily actives and Threads above 500 million monthly actives. His tone was confident and expansive: he described personal agents, business agents, APIs, and compute as large future opportunities and repeatedly said the company is building toward a major new platform shift.

Susan Li focused on the financial tradeoffs of Meta’s AI buildout and the operating leverage underneath the revenue growth. She highlighted that ad growth came from 14% higher impressions and a 12% higher average price per ad, while Reality Labs revenue was $431 million, up 16% year over year on AI glasses strength. She also stressed the cost burden from AI and infrastructure, noting 55% expense growth, $31.1 billion of capex, $90.3 billion of cash and marketable securities, and a move to a $165 billion to $169 billion expense outlook with $130 billion to $145 billion of capex for 2026.

Analysts pressed management on where AI monetization will scale first, how Meta plans to fund its multiyear compute build, and whether the company will need to build more go-to-market muscle for enterprise. Zuckerberg said all of the major opportunities look meaningful, but he sees the highest-margin path as selling intelligence rather than raw compute, while Li said Meta is not giving 2027 capex guidance because planning remains highly dynamic. On open source, Zuckerberg said Meta will keep a mix of open and closed models, but he does not view open-weight models as a substitute for developing proprietary frontier models. Li also clarified that the focus on 2026 and 2027 capacity reflects both current demand constraints and uncertainty around long-term supply-chain capacity.