A fixed rule set over this filing's XBRL figures and the number of high-severity risks found in it — no model judgement.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
In 2026-Q2, Meta reported revenue of $60.80B, up 28% year-over-year driven by advertising growth, while net income declined to $15.85B due to heavy investments in AI infrastructure and legal expenses.
Filed · Source: SEC EDGAR 10-Q filing
Meta delivered robust 28% YoY revenue growth to $60.80B in 2026-Q2, but operating income fell 8% to $18.78B due to elevated infrastructure, AI, and legal costs.
Last 4 quarters: 3 beats, 1 miss
Reported EPS of $6.18 versus the $7.36 analyst consensus — a -16.0% miss for Jun 2026.
Family of Apps revenue reached $60.37B in 2026-Q2, up 28% YoY, supported by a 14% increase in ad impressions and a 12% rise in average price per ad. Daily Active People (DAP) increased 3% YoY to 3.60B, with worldwide Average Revenue Per Person (ARPP) expanding 24% to $16.86.
Source: 10-Q Item 2 MD&A, p.31-37
Total costs and expenses increased 55% YoY to $42.03B in 2026-Q2, reducing operating margin from 43% to 31%. The cost increases were driven by data center infrastructure, third-party cloud services, third-party AI token expenses, and $2.40B in legal proceeding charges recognized within G&A.
Source: 10-Q Item 2 MD&A, p.31, 41-44
Reality Labs revenue rose 16% YoY to $431M in 2026-Q2, driven by sales of AI glasses despite lower Meta Quest sales. The segment posted an operating loss of $4.62B for the quarter, bringing six-month losses to $8.65B.
Source: 10-Q Item 2 MD&A, p.34, 42-44
Capital expenditures, including finance lease principal payments, were $31.08B for 2026-Q2 as Meta aggressively expanded servers, data centers, and technical infrastructure to support generative AI and superintelligence development.
Source: 10-Q Item 2 MD&A, p.32, 34
Legislative and regulatory frameworks such as the EU Digital Markets Act, GDPR, and U.S. state privacy laws limit Meta's access to user activity data signals. In April 2025, the European Commission ruled Meta's subscription for no ads model non-compliant with the DMA, creating ongoing compliance and revenue risks in Europe.
Source: 10-Q Item 1A, p.61-62
Meta remains vulnerable to policy and technical changes made by platform owners like Apple and Google. Platform modifications, such as iOS privacy controls and cookie deprecation in browsers, weaken ad measurement capabilities and impact marketer spend.
Source: 10-Q Item 1A, p.62-63
Emerging short-form video competitors like TikTok have reduced user engagement among key demographics such as younger users. Furthermore, high-growth formats like Reels continue to monetize at lower rates relative to traditional Feed and Stories formats.
Source: 10-Q Item 1A, p.58-61
This analysis does not extract a guidance section. Companies issue revenue and EPS outlook in the 8-K press release and on the earnings call rather than in the 10-Q itself — though the filing's management discussion can contain forward-looking statements, which appear in the highlights above where they were material.
See the META earnings preview — expected date, analyst estimates and what to watch →
Meta reported total revenue of $60.80B in 2026-Q2, representing a 28% increase year-over-year. Diluted EPS was $6.18, while net income fell 13.6% YoY to $15.85B due to rising infrastructure, AI, and legal costs.
Meta's Family daily active people (DAP) averaged 3.60B in June 2026, up 3% year-over-year. Worldwide Average Revenue Per Person (ARPP) reached $16.86, representing a 24% increase compared to 2025-Q2.
Meta's operating margin dropped from 43% in 2025-Q2 to 31% in 2026-Q2. The margin compression was caused by higher infrastructure depreciation, third-party AI token costs, severance, and $2.40B in legal-related charges.
Reality Labs generated $431M in revenue in 2026-Q2 (up 16% YoY) but registered an operating loss of $4.62B. Management expects full-year 2026 Reality Labs losses to remain similar to 2025.
Expected release date, analyst estimates & what to watch
Meta reported a strong Q1 2026 with revenue surging 33.1% YoY to $56.3B and net income jumping 60.9% to $26.8B, driven by robust advertising demand, though R&D spending soared 45.7% and long-term debt more than doubled as the company aggressively invests in AI and infrastructure.
META reported strong financial performance in Q2 FY2025 with significant growth in revenue and net income, driven by increased operational efficiency and strategic investments.
Meta Platforms delivered record revenue of $201.0B in FY2025, up 22.2% YoY, driven by strong advertising growth and expanding operating leverage, though net income dipped 3.1% to $60.5B as R&D spending surged 30.8% to $57.4B reflecting massive AI and metaverse investments.
Other companies in Interactive Media & Services