Meta Platforms reported a net income of $15.85bn for the second quarter ended 30 June 2026 (Q2 2026), down 14% from $18.34bn a year earlier.
Diluted earnings per share of the social technology company in the reported quarter declined 13% to $6.18 from $7.14. Revenue for the quarter rose 28% to $60.80bn compared with $47.52bn in the prior-year period.
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Total costs and expenses increased 55% to $42.03bn from $27.08bn, reflecting $2.40bn in charges related to legal proceedings and $1.18bn in severance expenses connected to a May 2026 headcount reduction.
Income from operations for the Facebook owner fell 8% to $18.78bn, resulting in an operating margin of 31%, down from 43% a year ago. The provision for income taxes increased by 32% to $2.91bn, with the effective tax rate rising to 16% from 11% in the same period last year.
Cash, cash equivalents, and marketable securities totalled $90.26bn as of 30 June 2026. Long-term debt stood at $83.66bn. Cash flow from operating activities was reported at $31.86bn for the quarter, while free cash flow was $784m.
Capital expenditures, including principal payments on finance leases, amounted to $31.08bn. Dividend and dividend equivalent payments during the quarter were $1.35bn.
Th company’s headcount was 75,472 as of the end of the quarter, a decrease of 1% year-on-year, including approximately 8,000 employees impacted by the May 2026 headcount reduction. Meta said the majority of those employees will no longer be reflected in headcount by the end of the third quarter.
In terms of operating metrics, the Family daily active people (DAP) averaged 3.6 billion in June 2026, up 3% year-on-year. Ad impressions delivered across Meta’s Family of Apps grew 14% compared with the previous year, while the average price per ad increased 12%.
For the third quarter of 2026, Meta forecasts revenue in the range of $61bn to $64bn. The company expects foreign currency to be a 1% headwind to total revenue growth year-on-year.
Meta raised its 2026 full-year expense outlook to $165bn to $169bn, up from a prior range, to account for legal charges recognised in the second quarter.
Full-year capital expenditures are now projected at $130bn to $145bn, narrowing from a previous range of $125bn to $145bn.
Meta expects to deliver operating income for 2026 above the level achieved in 2025. The company anticipates a tax rate of 15% to 17% for the remainder of 2026, higher than its previous outlook of 13% to 16%.
Meta founder and CEO 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.”
In a separate development, and BlackRock have announced a joint venture to develop and own a data centre campus in El Paso, Texas.
Meta will make an investment of over $10bn in the data centre project, which is expected to support more than 4,000 construction jobs and 300 operational roles.
Upon completion, BlackRock will hold an 80% interest in the venture and Meta will retain 20%. Meta will contribute land and assets valued at approximately $2.3bn and BlackRock will provide about $4.9bn in cash.
Earlier this month, Meta withdrew its AI image generation feature, Muse Image, only days after its launch in response to extensive privacy-related concerns.
