Meta Platforms’ Stock Takes a Hit Following Earnings Report
Meta Platforms’ Q2 2026 earnings report, released on July 29, 2026, fell short of expectations, causing a 10% drop in after-hours trading. The tech titan, specializing in social media and AI, reported an earnings per share (EPS) of $6.18, a significant miss compared to the anticipated $7.22, as per LSEG data. Despite reporting a revenue of $60.80 billion—marginally above the consensus estimate of $60.17 billion—investor confidence was shaken.
Adding to the market’s unease was Meta’s forward guidance for Q3 2026. The company’s projected revenue of $61 billion to $64 billion fell short of Wall Street’s expectation of $63.15 billion. The midpoint projection of $62.5 billion was particularly concerning. Additionally, the company’s free cash flow suffered due to an increase in AI infrastructure costs, despite maintaining the upper limit of its capital expenditure guidance.
Meta’s anticipated AI-related capital expenditure for the full year of 2026 stands at a staggering $125 billion to $145 billion. This projection has fueled investor concerns over return on investment. The report underscores the growing tension between Meta’s thriving advertising revenues and the substantial costs associated with remaining competitive in the AI industry. This has led to speculation about the profitability of these investments.
Source: CNBC – Meta Q2 Earnings Report 2026