Meta Platforms (META) investor relations material

Executive summary

• Q2 2026 revenue reached $60.80 billion, up 28% year-over-year, driven by strong ad performance, higher ad impressions and prices, and AI-powered product innovation.

• Net income for Q2 2026 was $15.85 billion, with diluted EPS of $6.18; operating income declined 8% to $18.78 billion due to higher costs, including $2.4 billion in legal charges and $1.18 billion in severance.

• Daily active users across all apps reached 3.6 billion, with Instagram surpassing 2 billion daily actives and Threads exceeding 500 million monthly actives.

• AI investments are accelerating business growth, improving user experience, ad performance, and enabling new product launches.

• Major product launches include new AI models, Meta One subscription, and AI-powered creative tools for advertisers.

Financial highlights

• Family of Apps revenue was $60.4 billion, up 28% year-over-year; Reality Labs revenue was $431 million, up 16%, but segment loss widened to $4.62 billion.

• Advertising revenue grew 27% to $59.36 billion; ad impressions increased 14% and average price per ad rose 12%.

• Total expenses rose 55% to $42.03 billion, including $2.4 billion in legal charges and $1.18 billion in severance.

• Free cash flow was $784 million; cash and marketable securities totaled $90.26 billion, with $83.66 billion in debt.

• Capital expenditures reached $31.08 billion in Q2 2026.

Outlook and guidance

• Q3 2026 revenue is expected between $61–64 billion, with a 1% FX headwind.

• Full-year 2026 expenses are projected at $165–169 billion, reflecting legal charges.

• 2026 capital expenditures are forecast at $130–145 billion; effective tax rate for the remainder of 2026 is expected at 15–17%.

• Operating income for 2026 is anticipated to exceed 2025 levels.

• Full-year 2026 Reality Labs operating losses are expected to remain similar to 2025.