Meta Platforms Reports Q2 Earnings with Mixed Results
Meta Platforms (NASDAQ: META) announced on July 29, 2026, that its Q2 operating income dropped to $18.8 billion, an 8% decline year-over-year, as expenses surged 55%. While revenue grew 28%, driven by increases in ad impressions and pricing, the company’s Q3 revenue guidance is weaker than anticipated. As of the market close, Meta’s shares have fallen 10%, trading 26% below their all-time high from August 2025.
The company maintained its 2026 capital expenditures (capex) guidance, raising the lower end from $125 billion to $130 billion, while keeping the upper end at $145 billion. CEO Mark Zuckerberg highlighted that the firm is receiving offers from customers willing to pay a premium for its excess compute capacity. Despite these developments, analysts expect Meta’s free cash flow to remain negative in 2026 and 2027, with long-term debt soaring to $83.7 billion, a significant rise from $58.7 billion at the end of the previous year.
As of Q2 2026, Meta’s family of apps boasts 3.6 billion daily active users. The success of its AI investments is critical, with Zuckerberg emphasizing the goal of improving user experience and ad performance through AI developments. Investors are closely watching how these efforts translate into revenue growth amid tightening market conditions.
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