Meta Platforms, Inc. (META) has experienced a 17.4% year-to-date share decline, falling behind the broader Zacks Computer & Technology sector, which gained 15.7%. For Q2 2026, Meta reported revenues of $60.8 billion, up 28% year-over-year; however, expenses increased by 55% to $42 billion, leading to an 8% decline in operating income and a drop in operating margin from 43% to 31%. The company adjusted its total expense outlook for 2026, now estimating between $165 billion and $169 billion.
As part of its AI development, Meta’s capital expenditures surged to $31.08 billion in Q2 2026, compared to $17.01 billion the previous year. Free cash flow decreased to $784 million from $8.55 billion. Long-term debt has escalated to $83.66 billion as of June 30, 2026, up from $58.74 billion at end-2025, following nearly $25 billion in new long-term debt issued during H1 2026. The Zacks Consensus Estimate for Q3 2026 earnings is $6.61 per share, reflecting an 8.8% decline from last year’s corresponding quarter.
Meta expects Q3 2026 revenues between $61 billion and $64 billion, with a consensus forecast of $63.17 billion, indicating potential growth of 23.3% year-over-year. Despite increased engagement metrics from its AI-integrated platforms, investor concerns persist surrounding the company’s rising infrastructure costs and competitive pressures from Snap, Amazon, and Alphabet in the ad sector.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
