Meta's Q2 Revenue Surges 28%, yet Stock Dips in After-hours

WHO:

CNBC - Meta CEO Mark Zuckerberg stated, "Overall, we expect that a significant portion of our compute is going to go towards training our models, growing our core business, and delivering personal agents and new products."

Techmeme - Meta Platforms, Inc. reported its financial results.

CNBC - Mark Zuckerberg is the CEO of Meta.

WHAT:

CNBC - Meta's operating income for the Family of Apps segment fell to $23.4 billion from $25.0 billion.

Fortune - Meta's capital expenditures for the quarter reached $31.1 billion, nearly double the amount spent a year earlier.

Fortune - Meta's depreciation and amortization in the second quarter rose 46% year over year to $6.4 billion.

Fortune - Meta issued $24.9 billion of long-term debt during the quarter and did not buy back any stock.

CNBC - Meta's capital expenditures guidance for the year has been narrowed to between $130 billion and $145 billion from a prior range of $125 billion to $145 billion.

CNBC - Meta announced a venture with BlackRock to create a $14 billion data center project in El Paso, Texas.

CNBC - Meta's Hyperion data center project in rural Louisiana is expected to cost over $50 billion.

CNBC - Meta shares plummeted almost 10% in extended trading after the company issued a weaker-than-expected revenue forecast.

CNBC - Daily active people (DAP) came in at 3.6 billion, trailing Wall Street estimates of 3.61 billion.

CNBC - Meta's Reality Labs unit was expected to record a second-quarter loss of $5.07 billion on revenue of $423.4 million.

CNBC - Meta's total costs and expenses for the quarter included $2.4 billion of charges related to legal proceedings and $1.18 billion of severance expenses.

CNBC - Finance Chief Susan Li stated that, excluding legal and severance charges, operating income would have increased 9% year over year.

Techmeme - Meta's Q2 revenue increased by 28% year-over-year to $60.8 billion.

Techmeme - The number of family daily active people rose by 3% to 3.6 billion on average for June 2026.

CNBC - Meta's earnings per share were $6.18, compared to an expected $7.22.

CNBC - Meta's revenue of $60.80 billion exceeded the expected $60.17 billion.

CNBC - Meta's guidance for the upcoming quarter is between $61 billion and $64 billion, with a midpoint of $62.5 billion.

CNBC - Meta's free cash flow decreased to $784 million from $8.55 billion a year earlier.

CNBC - Meta's total costs and expenses for the quarter were $42.03 billion, a 55% increase from the previous year.

CNBC - Net income for the period fell to $15.85 billion from $18.34 billion, or $7.14 per share, in the same quarter last year.

CNBC - Meta's Reality Labs unit reported $4.6 billion in operating losses with $431 million in sales.

WHERE:

CNBC - Meta's headquarters is located in Menlo Park, California.

CNBC - A new data center project is planned in El Paso, Texas.

CNBC - Meta's Hyperion data center project is located in rural Louisiana.

CNBC - A $9 billion data center is planned in Alberta, Canada.

WHEN:

Techmeme - The financial results reported are for the quarter ended June 30, 2026.

CNBC - Meta Connect annual event is scheduled for September 25, 2024.

WHY:

CNBC - Meta's guidance assumes foreign currency is an approximately 1% headwind to year-over-year total revenue growth.

CNBC - The increase in total costs includes $2.4 billion related to legal proceedings and $1.18 billion in severance expenses due to layoffs.

HOW:

Fortune - Meta is transitioning its financing strategy to a greater mix of debt to fund long-term infrastructure projects.

CNBC - Meta is looking to lease out excess capacity to third parties, with Zuckerberg noting, "We're getting a lot of offers for compute at a significant premium over what we paid for it."

CNBC - Meta debuted the Muse Spark 1.1 model, which AI chief Alexandr Wang described as the "strongest model for agentic and coding work yet" and offered at a cheaper price than competitors.

CNBC - Meta is looking to lease out excess capacity to third parties as part of its strategy to monetize its AI-related efforts.

CNBC - Meta is investing heavily in artificial intelligence infrastructure, which has impacted its free cash flow.

CNBC - Meta is narrowing its capital expenditures guidance for the year to between $130 billion and $145 billion.

(UPDATED July 30, 2026 07:53 UTC)

Meta's operating income for its Family of Apps segment has dropped to $23.4 billion, down from $25.0 billion. The company also reported capital expenditures of $31.1 billion for the quarter, nearly double what it spent a year earlier, while depreciation and amortization rose 46% year over year to $6.4 billion. In a strategic shift, Meta issued $24.9 billion in long-term debt during the quarter, opting not to buy back any stock as it focuses on funding long-term infrastructure projects.

(UPDATED July 30, 2026 03:55 UTC)

Meta CEO Mark Zuckerberg announced that the company expects a significant portion of its computing resources to be dedicated to training models and developing new products. The tech giant has also narrowed its capital expenditures guidance for the year to between $130 billion and $145 billion, while revealing a partnership with BlackRock to launch a $14 billion data center project in El Paso, Texas. Additionally, Meta's Hyperion data center project in rural Louisiana is projected to exceed $50 billion, and Zuckerberg mentioned they are considering leasing out excess capacity to third parties at a premium.

(UPDATED July 29, 2026 23:18 UTC)

Meta shares dropped nearly 10% in extended trading after the company revealed a revenue forecast that fell short of expectations, with daily active users reported at 3.6 billion, just shy of Wall Street's estimate of 3.61 billion. The company's Reality Labs unit is anticipated to incur a second-quarter loss of $5.07 billion, while total costs for the quarter included significant legal and severance charges. In a bid to enhance its AI strategy, Meta introduced the Muse Spark 1.1 model, touted as the strongest for agentic and coding tasks, and is exploring leasing excess capacity to third parties.

(UPDATED July 29, 2026 22:27 UTC)

Meta Platforms, Inc. has reported its financial results for the quarter ending June 30, 2026, revealing a 28% increase in revenue year-over-year, totaling $60.8 billion, which surpassed expectations. However, the company's earnings per share came in at $6.18, falling short of the anticipated $7.22, and net income decreased to $15.85 billion from $18.34 billion in the same quarter last year. Looking ahead, Meta's guidance for the upcoming quarter is between $61 billion and $64 billion, with a midpoint of $62.5 billion, as they continue to invest heavily in artificial intelligence infrastructure amidst rising costs.