Open report — full analysis, no account required.
Sign up to generate reports and read filings that aren't on the open list.
Get notified when META files again. Create a free account and we'll email you the moment its next filing is analyzed.
Get filing alertsMeta Q2 revenue up 28% to $60.8B, but net income falls 14% on $3.6B in legal and severance charges
Filed July 29, 2026 · Period ending July 29, 2026 · ~1 min read
Key Changes
-
high
Net income fell 14% YoY to $15.8B and EPS declined 13% to $6.18 as costs surged 55% to $42.0B, driven by $2.4B in legal charges and $1.18B in severance from May 2026 headcount reduction affecting ~8,000 employees.
Exhibit 99.1 view on EDGAR → -
high
Revenue grew 28% YoY to $60.8B on 14% ad impression growth and 12% price-per-ad growth, but operating margin compressed from 43% to 31% due to one-time charges.
Exhibit 99.1 view on EDGAR → -
high
Raised 2026 capex guidance floor to $130B (from $125B prior), now expects $130–145B for the year reflecting continued AI infrastructure investment.
Exhibit 99.1 view on EDGAR → -
high
Raised full-year 2026 expense outlook to $165–169B incorporating the $2.4B legal charge; increased tax rate guidance to 15–17% from prior 13–16% for remaining quarters.
Exhibit 99.1 view on EDGAR → -
medium
Disclosed several youth-related trials scheduled in the U.S. for 2026 that may result in material loss, beyond the $2.4B legal charge already recognized in Q2.
Exhibit 99.1 view on EDGAR →
Summary
Meta reported strong top-line growth in Q2 2026 with revenue up 28% year-over-year to $60.8 billion, driven by healthy ad-impression and pricing gains. However, profitability took a significant hit: net income fell 14% to $15.8 billion and operating margin compressed 12 percentage points to 31%, as total expenses surged 55%.
The expense spike was driven by $3.6 billion in one-time charges—$2.4 billion related to legal proceedings and $1.18 billion in severance from a May 2026 headcount reduction affecting approximately 8,000 employees. Meta raised its full-year expense guidance to $165–169 billion to reflect the legal charge and increased its expected tax rate for the remainder of 2026 to 15–17%.
The company also lifted the floor of its 2026 capital-expenditure outlook to $130 billion (from $125 billion), signaling continued heavy investment in AI infrastructure. Despite the margin pressure, Meta reaffirmed that 2026 operating income should exceed 2025 levels. The company flagged ongoing youth-related litigation in multiple markets, with several U.S. trials scheduled this year that could result in additional material losses—a forward-looking risk beyond the charges already booked.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Meta disclosed Q2 2026 financial results via press release and conference call scheduled for July 29, 2026.
Added in current filing · verify on EDGAR →
On July 29, 2026, Meta Platforms, Inc. ("Meta") issued a press release and will hold a conference call regarding its financial results for the quarter ended June 30, 2026.
Meta announced its second quarter 2026 financial results through a press release and scheduled conference call. The 8-K filing itself does not contain the actual financial figures; those are furnished in the attached Exhibit 99.1 press release, which is not incorporated by reference and not deemed filed under the Exchange Act.
Added in current filing · verify on EDGAR →
Meta is making reference to non-GAAP financial information in both the press release and the conference call. A reconciliation of GAAP to non-GAAP results is provided in the attached Exhibit 99.1 press release.
Meta disclosed that it will present non-GAAP financial measures in its earnings materials and conference call, with reconciliations to GAAP provided in the press release. This is standard practice for earnings announcements to provide adjusted metrics alongside GAAP results.
Event · Exhibit 99.1
Meta reported Q2 2026 results: revenue up 28% YoY to $60.8B, but net income fell 14% to $15.8B amid 55% expense growth and $3.6B in charges.
Added in current filing · view on EDGAR →
Revenue $ 60,801 $ 47,516 28 %
Costs and expenses 42,026 27,075 55 %
Income from operations $ 18,775 $ 20,441 (8) %
Operating margin 31 % 43 % ... Net income $ 15,848 $ 18,337 (14) %
Diluted earnings per share (EPS) $ 6.18 $ 7.14 (13) %
Meta reported Q2 2026 revenue of $60.8 billion, up 28% year-over-year, driven by 14% growth in ad impressions and 12% growth in average price per ad. However, net income fell 14% to $15.8 billion and diluted EPS declined 13% to $6.18, as total costs and expenses surged 55% to $0.1M. Operating margin compressed from 43% to 31%.
Added in current filing · view on EDGAR →
Total costs and expenses were $42.03 billion, an increase of 55% year-over-year. This includes $2.40 billion of charges related to legal proceedings and $1.18 billion of severance expenses in connection with the May 2026 headcount reduction.
Meta recorded $2.4 billion in legal-proceeding charges and $1.18 billion in severance expenses related to a May 2026 headcount reduction. These one-time charges totaling $3.58 billion drove the 55% year-over-year expense increase and the operating-margin compression. The company noted approximately 8,000 employees were impacted by the reduction, with the majority to exit headcount by end of Q3 2026.
Added in current filing · view on EDGAR →
We anticipate 2026 capital expenditures, including principal payments on finance leases, to be in the range of $130-145 billion, narrowed from our prior outlook of $125-145 billion.
Meta raised the lower end of its full-year 2026 capital-expenditure guidance to $130–145 billion from a prior range of $125–145 billion. Q2 2026 capex was $31.08 billion. The elevated spending reflects continued investment in AI infrastructure and data-center capacity.
Thanks — your feedback helps us improve report quality.
Figures/quotes linked to EDGAR · Narrative written by AI · Jul 30, 2026 · How we verify