--- title: "Meta's Q2 revenue reached $60.8 billion, a year-on-year increase of 28%, with a net profit of $15.8 billion and free cash flow plummeting to less than $800 million" type: "News" locale: "en" url: "https://longbridge.com/en/news/294259087.md" description: "Meta released its Q2 2026 financial report, with revenue reaching $60.8 billion, a year-on-year increase of 28%; net profit was $15.8 billion. Despite capital expenditures reaching $31.1 billion, leading to a sharp decline in free cash flow to less than $800 million, the core business is driven by AI, with both ad impressions and prices increasing, and daily active users steadily growing. CEO Mark Zuckerberg is confident about the prospects of AI, and the CFO also provided guidance" datetime: "2026-07-29T20:42:43.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294259087.md) - [en](https://longbridge.com/en/news/294259087.md) - [zh-HK](https://longbridge.com/zh-HK/news/294259087.md) --- # Meta's Q2 revenue reached $60.8 billion, a year-on-year increase of 28%, with a net profit of $15.8 billion and free cash flow plummeting to less than $800 million "AI is accelerating our core business, driving the development of the next generation of products, and opening up new opportunities for enterprise applications," said Meta founder and CEO Mark Zuckerberg. "The results are already showing, and I am confident about the potential for the future." **Meta Q2 2026 Financial Highlights** **Meta Q2 2026 Operational and Other Financial Highlights** - Daily Active People (DAP) for Family of Apps — Average DAP in June 2026 was 3.6 billion, a year-on-year increase of 3%. - Ad Impressions — Ad impressions in the family of apps matrix increased by 14% year-on-year. - Average Price Per Ad — Average price per ad increased by 12% year-on-year. - Revenue — Revenue was $60.8 billion, a year-on-year increase of 28%. On a constant currency basis, revenue increased by 27% year-on-year. - Costs and Expenses — Total costs and expenses were $42 billion, a year-on-year increase of 55%. This includes $2.4 billion in legal-related expenses and $1.2 billion in severance costs related to layoffs in May 2026. - Capital Expenditures — Capital expenditures, including principal payments on finance leases, were $31.1 billion. - Capital Return Program — Dividends and dividend-equivalent payments were $1.4 billion. - Cash, Cash Equivalents, and Marketable Securities — As of June 30, 2026, cash, cash equivalents, and marketable securities totaled $90.3 billion. - Long-term Debt — As of June 30, 2026, long-term debt was $83.7 billion. - Cash Flow — Operating cash flow was $31.9 billion, and free cash flow was $784 million. - Employee Count — As of June 30, 2026, the total number of employees was 75,472, a year-on-year decrease of 1%. This figure includes approximately 8,000 employees affected by the layoffs in May 2026, most of whom will no longer be counted in the total employee count by the end of the third quarter of 2026. **CFO Outlook Comments:** **We expect total revenue for the third quarter of 2026 to be between $61 billion and $64 billion.** This guidance assumes current exchange rates, and foreign exchange fluctuations will have an approximate **1%** negative impact on year-on-year total revenue growth We are raising the lower limit of our expense guidance to account for the **$2.4 billion** in legal-related expenses recognized in the second quarter. Total expenses for the full year 2026 are now expected to be between **$165 billion and $169 billion**. We continue to expect that this year's operating profit will be **higher than the operating profit in 2025**. We anticipate that **capital expenditures in 2026 (including principal payments on finance leases) will be between $130 billion and $145 billion, narrowing from the previous guidance range of $125 billion to $145 billion.** If there are no significant changes in the tax environment, we expect the tax rate for the remaining quarters of 2026 to be between **15% and 17%, an increase from the previous guidance of 13% to 16%.** Finally, we will continue to monitor active legal and regulatory matters that may significantly impact our business and financial results. For example, we are facing ongoing scrutiny related to issues concerning minors in multiple markets, with several lawsuits related to minors scheduled for hearings in the U.S. this year, which could ultimately lead to significant losses. **Segment Performance** Financial results are reported by two reportable segments: **Family of Apps (FoA)** and **RL**. FoA includes Facebook, Instagram, Messenger, WhatsApp, and other services. RL includes consumer hardware, software, and content related to virtual and augmented reality. (Unit: $100 million) Meta's RL segment generated **$431 million** in revenue in the second quarter, with an operating loss of **$4.6 billion** during the same period. Wall Street had previously estimated that the segment's revenue for the second quarter would be **$423.4 million**, with a loss of approximately **$5.07 billion** ### Related Stocks - [META.US](https://longbridge.com/en/quote/META.US.md) - [FBL.US](https://longbridge.com/en/quote/FBL.US.md) - [METD.US](https://longbridge.com/en/quote/METD.US.md) - [METU.US](https://longbridge.com/en/quote/METU.US.md) - [METW.US](https://longbridge.com/en/quote/METW.US.md) - [FBY.US](https://longbridge.com/en/quote/FBY.US.md) - [FBYY.US](https://longbridge.com/en/quote/FBYY.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) ## Related News & Research - [MORNING BID EUROPE-Bond markets doing the Fed's work](https://longbridge.com/en/news/294301881.md) - [BUZZ-Street View: Meta's AI push to weigh on free cash flow as investors seek returns](https://longbridge.com/en/news/294329489.md) - [Mark Zuckerberg Says Can't Rely on Open Source AI Models Right Now: 'We Think That There's Some Risk…'](https://longbridge.com/en/news/294310763.md) - [Meta Platforms Q2 Preview: Key Items to Watch to Turn Stock Around After Earnings](https://longbridge.com/en/news/294099452.md) - [Meta Q2 earnings miss. 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