Meta Q2 Profit Drops 13.6% to $15.8B Despite 28% Revenue Surge
META is trading near its 52-week low of $520.26 (5.6% above the low).
Summary
Meta's Q2 net income fell 13.6% to $15.85B, or $6.18 per share, from $18.34B a year ago, even as revenue jumped 28% to $60.8B. The profit decline reflects surging costs tied to its massive AI infrastructure buildout—capex was recently hiked to $145B for 2026. Revenue came in slightly below the midpoint of prior guidance, while Q3 revenue guidance of $61B-$64B tops consensus estimates. This follows a string of high-impact events: a 10% workforce cut in May, a $21B GPU commitment to CoreWeave, and a new cloud business announced in July. The earnings miss on the bottom line, combined with aggressive spending, will pressure margins and test investor patience on AI returns.
At the time of this announcement, META was trading at $549.14 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.5T. The 52-week trading range was $520.26 to $796.25. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: dpa-AFX.