Meta Q2 FY2026: revenue up 28% but EPS misses as costs jump 55%
Meta grew revenue 28.0% to $60.80 billion, yet GAAP EPS fell 13.0% to $6.18 and free cash flow collapsed to $784 million — a quarter where the top line held up but the cost line told the story. Read it as a spending quarter: $2.40 billion of legal charges and a $31.08 billion capex bill hit earnings, while guidance points to more of the same.
1 · Expected vs. Actual
Free preview belowDiluted GAAP EPS was $6.18, down 13.0% from $7.14 a year ago and 16.0% below the $7.3594 consensus estimate. Net income fell 14.0% to $15.85 billion even though revenue grew 28.0%, because costs and expenses rose 55.0% to $42.03 billion. That included $2.40 billion of legal charges and $1.18 billion of severance tied to the May 2026 headcount reduction.
Revenue rose 28.0% to $60.80 billion, or 27.0% in constant currency, with ad impressions up 14.0% and average price per ad up 12.0%. Family of Apps delivered $60.37 billion of that and Reality Labs just $431 million. No consensus revenue figure is provided here, so judge the top line against its own 28.0% growth rate.
Third quarter 2026 revenue guidance is $61-64 billion, a mid-point of $62.50 billion, above the $60.80 billion just reported. Full-year 2026 expenses are now guided to $165-169 billion and capex to $130-145 billion, with the low ends raised. Management also lifted the expected tax rate for the rest of 2026 to 15-17% from a prior 13-16%.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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