The Guidance Numbers Wall Street Is Looking For From Meta Tonight

That wraps up our initial coverage of Meta’s Q2 results. Thank you for stopping by!

Meta generated $31.86 billion in operating cash flow during Q2, but its enormous infrastructure spending reduced free cash flow to just $784 million. That’s a stark drop-off compared to the $8.55 billion one year earlier.

Total costs and expenses grew 55% to $42.03 billion, far outpacing Meta’s 28% revenue growth. The quarter included $2.40 billion in legal charges and $1.18 billion in severance costs, helping push operating margin down to 31% from 43%.

Net income fell 14% to $15.85 billion, while diluted EPS declined 13% to $6.18. The ad business remains powerful, but the sharp cash-flow compression explains why shares initially fell despite the revenue beat.

Meta’s core advertising business remained exceptionally strong during Q2. Total revenue increased 28% year over year to $60.80 billion, while advertising revenue climbed 27% to $59.36 billion.

Ad impressions across Meta’s Family of Apps increased 14%, while the average price per ad rose 12%. The combination suggests Meta is generating growth from both greater engagement and stronger monetization rather than relying entirely on one lever.

Family daily active people reached 3.60 billion, up 3% year over year. Management guided Q3 revenue to $61 billion to $64 billion, indicating another quarter of substantial top-line growth if Meta reaches the midpoint of that range.

Meta Platforms narrowed its 2026 capital expenditure outlook to $130 billion to $145 billion, raising the lower end from its previous range of $125 billion to $145 billion.

The company spent $31.08 billion on capital expenditures and finance lease payments during Q2 alone. Meta also raised the lower end of its full-year expense forecast, with total expenses now expected between $165 billion and $169 billion.

The outlook keeps AI spending at the center of the investment debate. Meta still expects 2026 operating income to exceed 2025 levels, but investors will want evidence that AI-driven revenue growth can continue outrunning the company’s rapidly rising infrastructure costs.

Meta Platforms (NASDAQ:META) just reported earnings, with shares initially down 4% following the release. Here are the key numbers:

• Revenue: $60.80 billion vs. $60.29 billion expected
• EPS: $6.18 vs. $7.22 expected

Quick Read:

Meta beat revenue expectations by roughly 1%, with sales growing 28% year over year, but EPS missed estimates by 14% and declined 13%.

The initial selloff suggests investors are focused on the earnings shortfall and whether Meta’s massive AI investments are pressuring near-term profitability.

Top 5 Analyst Questions

1. GPU useful-life and capex payback timeline
2. Meta Superintelligence Labs monetization roadmap
3. Reality Labs path to narrowing the $4.03B operating loss
4. EU Less Personalized Ads revenue impact
5. Buyback pace after zero repurchases in Q4 2025.

Key Topics, Buzzwords, and Red Flags

• Key topics management must address: whether FY26 capex holds at $125-$145B, sustainability of +12% ad pricing, and tax rate normalization to 13-16%.
• Buzzwords to flag: “personal superintelligence,” Andromeda, Advantage+, agentic AI, Llama, WhatsApp business messaging.
• Red flags: another capex raise, expenses outpacing the +33.1% Q1 revenue print, depreciation acceleration, or fresh youth-litigation accruals.

Zuckerberg’s tone around Superintelligence Labs progress will likely set the stock’s direction after-hours.

Technical Setup Into the Close

Meta Platforms (NASDAQ:META) trades at $594.36 heading into the bell, up 0.27% intraday but down 7.83% over the past week. Prediction markets frame today’s range tightly: 79.5% probability of closing above $580, 73.5% above $590, but only 10.5% above $600, making $600 a firm resistance shelf and $580 near-term support.

Options positioning skews bullish. The July 31 expiration holds 67,113 contracts of earnings-night volume, with a 2.44x call-to-put open interest ratio. January 2027 calls show 5.59x call dominance, signaling durable long-side conviction beneath the recent selloff.

Historically, beats have delivered mixed reactions: Q1 2026’s 56.79% surprise still produced an 8.55% day-of decline. Expect volatility around $580 and $620.

With Polymarket pricing 87.9% odds of an earnings beat against a $7.2173 EPS estimate, the surprises tonight likely come from below the headline.

1. Tax swing risk. Q1 2026 booked an $8.03 billion income tax benefit from Treasury Notice 2026-7. Any reinterpretation could reverse that windfall.
2. FX cooling. Management guided only a 2% tailwind for Q2, down from 4% in Q1, tightening the reported growth cushion.
3. Youth litigation. Additional 2026 trials could deliver material loss accruals landing inside tonight’s filing.
4. Capex creep. The FY26 range already jumped to $125-$145 billion on component pricing. Another raise would echo the bearish Alphabet reaction retail traders keep referencing.

This live blog is being updated by Thomas Richmond, a 24/7 Wall St. contributor. You’ll get expert analysis of Meta’s earnings.

Simply stay on this page, and new updates will appear below automatically. We expect Meta to release earnings shortly after 4:00 p.m. ET.

Meta Platforms reports Q2 2026 results after the bell, with 84.1% of prediction-market traders betting on an earnings beat. However, the headline numbers may matter less than management’s outlook for AI spending and returns.

Meta recently raised its FY 2026 capex guidance to $125-$145 billion, placing infrastructure spending at the center of tonight’s debate. Shares have fallen 7.83% over the past week, 9.95% year to date, and 17.04% over the past year.

At a P/E of 22, Meta does not carry an extreme valuation. A confident outlook, stable margins, and evidence that AI is improving ad monetization could reopen the path toward prior highs. Softer ad pricing or another capex increase would strengthen the bear case that spending is outrunning returns.