Meta Platforms reported a 28 per cent year-on-year increase in revenue for the second quarter of 2026, driven by growth in advertising and user engagement, although net profit declined 14 per cent as higher operating costs weighed on earnings.
According to the company’s financial statement, revenue for the quarter ended June 30, 2026, rose to $60.80 billion from $47.52 billion a year earlier. On a constant-currency basis, revenue increased 27 per cent year-on-year.
Net income declined to $15.85 billion, compared with $18.34 billion in the corresponding quarter last year.
The company said total costs and expenses surged 55 per cent year-on-year to $42.03 billion, up from $27.08 billion. The increase included $2.40 billion in charges related to legal proceedings and $1.18 billion in severance expenses linked to the company’s May 2026 workforce reduction.
Income from operations fell 8 per cent to $18.78 billion, while operating margin narrowed to 31 per cent from 43 per cent in the year-ago quarter. Diluted earnings per share declined 13 per cent year-on-year to $6.18, and the effective tax rate rose to 16 per cent, compared with 11 per cent a year earlier.
Commenting on the results, Meta founder and Chief Executive Officer Mark Zuckerberg said, “AI is accelerating our core business today, powering our next generation of products, and opening the door to entirely new enterprise opportunities. The results are already showing, and I’m optimistic about the potential ahead.”
Operationally, Meta’s Family Daily Active People (DAP) averaged 3.60 billion in June 2026, up 3 per cent from a year earlier. Ad impressions delivered across the company’s Family of Apps increased 14 per cent year-on-year, while the average price per advertisement rose 12 per cent.
Capital expenditure, including principal payments on finance leases, stood at $31.08 billion during the quarter. As of June 30, 2026, Meta held $90.26 billion in cash, cash equivalents and marketable securities, while long-term debt totalled $83.66 billion.
Looking ahead, Meta expects third-quarter 2026 revenue to be in the range of $61 billion to $64 billion. The company also raised the lower end of its full-year expense forecast and now expects total 2026 expenses of $165 billion to $169 billion, reflecting the $2.4 billion legal charges recognised in the second quarter.
Meta narrowed its full-year 2026 capital expenditure outlook to $130 billion-$145 billion, compared with its previous forecast of $125 billion-$145 billion, and said it continues to expect operating income for 2026 to exceed that of 2025.
(With ANI inputs)
