Meta Q2 Revenue Hits $60.8B, But Margin Squeeze and Capex Cut Sink Shares 5-10%
META is trading near its 52-week low of $520.26 (4.2% above the low).
Summary
Meta delivered Q2 revenue of $60.8B, up 28% YoY, with net income of $15.8B and EPS of $6.18. Operating margin compressed to 31%, and the company slashed its 2026 capex forecast — a sharp reversal from the $145B plan announced in June. Shares fell 5–10% after hours as the market digested the margin pressure and reduced spending outlook. User growth remained solid: daily active users across apps rose 3% to 3.6B, Instagram DAUs topped 2B, and Threads hit 500M monthly users. Headcount dipped 1% to 75,472. Q3 revenue guidance of $61–$64B provides a near-term floor, but the capex cut signals a strategic pivot that will dominate the earnings call. Separately, Indian regulators are intensifying scrutiny on content, competition, privacy, and payments — a new regulatory front. A multi-year Corning deal worth up to $6B for optical fiber supports AI infrastructure, but the capex reduction overshadows it. This follows a tumultuous quarter: a 10% workforce cut in May, a $2B AI acquisition unwound in June, and a security breach. The after-hours drop extends the stock's slide toward its 52-week low of $520.26.
At the time of this announcement, META was trading at $542.00 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: Wiseek News.