Meta Platforms Reports Q2 Earnings
Meta Platforms (NASDAQ: META) reported its second-quarter revenue at $60.8 billion, marking a 28% increase year over year. However, shares dropped approximately 6% in after-hours trading following the results released on Wednesday.
Despite strong advertising growth, Meta’s operational cash flow was $31.9 billion, with free cash flow plummeting to just $784 million after $31.1 billion in capital expenditures. The company also revised its 2026 capital expenditure forecast to a range of $130 billion to $145 billion, raising concerns about future cash flow sustainability as it focuses heavily on building out AI infrastructure.
Net income for the quarter fell 14% to $15.8 billion, and earnings per share decreased 13% to $6.18. Despite a steady increase in ad impressions and pricing, the growth rate has slowed from 33% in the previous quarter. Meta concluded June with $90.3 billion in cash and marketable securities, providing a buffer for its ambitious spending plans.
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