Meta Platforms 8-K
EarningsGuidance raisedRestructuringImpairment / chargeLegal / investigation
Higher ad impressions and prices drove growth, while legal charges and severance squeezed operating profit and the expense outlook’s floor rose.
Filed 2026-07-29 16:03 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with Q3 and FY2026 guidance. Revenue grew 28% as ad impressions and average ad prices increased, while higher expenses—including legal charges and severance—reduced operating income and free cash flow. Meta raised the lower end of its FY2026 expense outlook, narrowed its capital expenditure range, and increased its remaining-2026 tax-rate outlook.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Revenue | $60.8B | $47.5B | 28% |
| Operating income | $18.8B | $20.4B | -8% |
| Net income | $15.8B | $18.3B | -14% |
| Diluted EPS | $6.18 | $7.14 | -13% |
| Operating cash flow | $31.9B | $25.6B | 25% |
| Free cash flow (non-GAAP) | $784M | $8.55B | -91% |
- Ad impressions increased 14% and average price per ad increased 12%; average June daily active people were 3.60B, up 3%.
- Costs and expenses rose 55% to $42.0B, including $2.40B in legal charges and $1.18B in severance expenses. Capital expenditures, including principal payments on finance leases, were $31.08B.
- Cash, cash equivalents and marketable securities totaled $90.3B; long-term debt was $83.7B. Dividend and dividend equivalent payments were $1.35B. Headcount was 75,472, down 1% Y/Y; about 8,000 employees were affected by the May reduction, most expected to leave reported headcount by Q3 end.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue (GAAP) | Q3 2026 | $61B-$64B; ≈1% FX headwind to Y/Y growth | — | — |
| Total expenses | FY2026 | $165B-$169B | — | Raised lower end |
| Operating income | FY2026 | Above FY2025 | — | Reaffirmed |
| Capital expenditures, including principal payments on finance leases | FY2026 | $130B-$145B | $125B-$145B | Narrowed |
| Tax rate | Remaining quarters of 2026 | 15%-17% | 13%-16% | Increased |
Investor Takeaways
- Q3 revenue versus the $61B-$64B range will show whether recent advertising growth continues.
- Watch legal and regulatory developments, including scheduled U.S. youth-related trials; Meta says they could ultimately result in a material loss.
The summary is written by an AI model reading the filing.
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