Meta Platforms, Inc. (META) reported second-quarter earnings for 2026, showing earnings of $6.18 per share, a 13.4% decrease year over year, and falling short of the Zacks Consensus Estimate by 12.96%. Revenue reached $60.80 billion, up 28% year over year, surpassing expectations by 0.98%.
Key drivers included a 14% increase in ad impressions and a 12% rise in average ad prices, although rising infrastructure and legal costs impacted profitability. Total costs surged 55% to $42.03 billion, which included $2.40 billion for legal proceedings and $1.18 billion in severance related to employee cuts. Operating income declined 8.2% to $18.78 billion, with the operating margin dropping from 43% to 31%.
For the third quarter, Meta anticipates revenues between $61 billion and $64 billion, expecting expenses for 2026 to be between $165 billion and $169 billion. The company has a cash reserve of $90.26 billion but increased its long-term debt by nearly $25 billion to support capital expenditures.
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