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, though the 2026 capex forecast was slashed from the $145B plan announced in June. Operating margin compressed to 31%. 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. Shares fell 5-10% after hours. The earnings miss on the bottom line, combined with aggressive spending, will pressure margins and test investor patience on AI returns.
Updated with a Wiseek News report · What changed
Updates
· Wiseek News — Operating margin compressed to 31% and 2026 capex forecast was slashed from the $145B plan announced in June. Shares fell 5-10% after hours.
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.