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Meta Platforms reported a 28 per cent year-on-year increase in revenue for the second quarter of 2026, while its net income declined 14 per cent as higher costs and expenses weighed on profitability, as per the company's financial statement.
The company posted revenue of USD 60.80 billion for the quarter ended June 30, 2026, compared with USD 47.52 billion a year earlier. Net income stood at USD 15.85 billion, down from USD 18.34 billion in the corresponding quarter last year. Meta said, "Revenue was USD 60.80 billion, an increase of 28 per cent year-over-year. Revenue on a constant currency basis would have increased by 27% year-over-year". Costs and expenses surged 55 per cent year-on-year to USD 42.03 billion, compared with USD 27.08 billion in the same quarter last year. The company said this included USD 2.40 billion of charges related to legal proceedings and USD 1.18 billion in severance expenses connected with the May 2026 headcount reduction. Income from operations fell 8 per cent year-on-year to USD 18.78 billion, while operating margin narrowed to 31 per cent from 43 per cent a year ago. Diluted earnings per share declined 13 per cent year-on-year to USD 6.18, while the effective tax rate increased to 16 per cent from 11 per cent in the year-ago period. Mark Zuckerberg, Meta founder and Chief Executive Officer, said, "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." On the operational front, the company's Family daily active people (DAP) averaged 3.60 billion in June 2026, an increase of 3 per cent year-on-year. Ad impressions delivered across Meta's Family of Apps increased 14 per cent, while the average price per ad rose 12 per cent over the same period. Capital expenditure, including principal payments on finance leases, stood at USD 31.08 billion during the quarter. Cash, cash equivalents and marketable securities totalled USD 90.26 billion as of June 30, 2026, while long-term debt stood at USD 83.66 billion. Looking ahead, Meta said it expects third-quarter 2026 revenue to be in the range of USD 61-64 billion. The company raised the lower end of its full-year 2026 expense outlook and now expects total expenses of USD 165-169 billion, incorporating the USD 2.4 billion legal charges recognised during the second quarter. Meta also narrowed its 2026 capital expenditure outlook to USD 130-145 billion, from its earlier forecast of USD 125-145 billion, and said it continues to expect operating income for 2026 to exceed that of 2025. (ANI)
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