Meta Platforms reported second quarter 2026 revenue of $60.80 billion, up 28% from $47.52 billion a year earlier. The company credited artificial intelligence for accelerating growth across its advertising business.
Total costs and expenses rose 55% year over year to $42.03 billion. The increase reflected a $2.40 billion charge tied to legal proceedings and $1.18 billion in severance expenses connected to a headcount reduction carried out in May 2026.
Income from operations came in at $18.78 billion, down 8% from $20.44 billion in the prior-year quarter, as operating margin fell to 31% from 43%. Net income declined 14% to $15.85 billion, and diluted earnings per share fell to $6.18 from $7.14 a year earlier.
Meta said average family daily active people reached 3.60 billion in June 2026, a 3% increase year over year. Ad impressions across its Family of Apps grew 14%, and the average price per ad increased 12%. Advertising revenue reached $59.36 billion for the quarter.
The Family of Apps segment, which includes Facebook, Instagram, Messenger, and WhatsApp, generated $23.39 billion in operating income. Reality Labs, the company’s virtual and augmented reality unit, reported an operating loss of $4.62 billion.
Capital expenditures, including principal payments on finance leases, totaled $31.08 billion for the quarter. Cash, cash equivalents, and marketable securities stood at $90.26 billion as of June 30, 2026, and long-term debt was $83.66 billion. Headcount was 75,472, down 1% year over year, reflecting the May 2026 reduction that affected approximately 8,000 employees.
For the third quarter of 2026, Meta expects total revenue in a range of $61 billion to $64 billion, with foreign currency estimated as an approximately 1% headwind to year-over-year growth. The company raised the lower end of its full-year 2026 total expense outlook to a range of $165 billion to $169 billion to account for the legal charges recognized during the quarter, and it continues to expect operating income above 2025 levels.
Meta narrowed its 2026 capital expenditure outlook, including finance lease payments, to a range of $130 billion to $145 billion, up from a prior range of $125 billion to $145 billion. The company said its tax rate for the remaining quarters of 2026 is expected to be between 15% and 17%, up from a prior outlook of 13% to 16%. Meta noted it continues to monitor active legal and regulatory matters, including youth-related litigation, that could materially affect its business and financial results.
KEY QUOTE:
AI is accelerating our core business today, powering our next generation of products, and opening the door to entirely new enterprise opportunities. The results are already showing, and I’m optimistic about the potential ahead.
Mark Zuckerberg, Meta Founder and CEO
