Meta Platforms, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 29 July 2026: press release. Guidance figures: 2 raised, 1 new. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue rose 28 percent: Revenue was $60.80 billion, up 28% year-over-year, or 27% excluding foreign exchange effect. Revenue was $47.52 billion a year earlier. Source
• Costs rose 55 percent: Total costs and expenses were $42.03 billion, up 55% year-over-year, against $27.08 billion a year earlier. Source
• Operating margin fell to 31 percent: Income from operations was $18.78 billion, down 8%. Operating margin was 31% against 43% a year earlier. Source
• Operating cash flow was $31.86 billion: Operating cash flow was $31.86 billion. Free cash flow was $784 million, against $8.55 billion a year earlier. Source
• Third quarter revenue range set: Third quarter 2026 total revenue is expected at $61-64 billion, with foreign currency assumed to be an approximately 1% headwind to growth. Source
• Full-year expense range raised at low end: Full-year 2026 total expenses are expected at $165-169 billion, against $162-169 billion previously. The low end was raised. Source
• Youth-related trials ahead: Scrutiny of youth-related issues continues in several markets. U.S. trials scheduled this year may result in a material loss. Source

“AI is accelerating our core business today, powering our next generation of products, and opening the door to entirely new enterprise opportunities,”

Mark Zuckerberg, Meta founder and CEO

Guidance

What changed from last quarter

• New guidance: A third-quarter 2026 total revenue range of $61-64 billion was given. The first-quarter release did not include a third-quarter range. Source
• Guidance raised: The full-year 2026 total expense range moved from $162-169 billion to $165-169 billion. Only the low end changed. Source
• Guidance raised: The remaining-2026 tax rate range moved from 13-16% to 15-17%. Source
• Guidance raised: The full-year 2026 capital expenditure range was narrowed from $125-145 billion to $130-145 billion. The low end moved up; the high end is unchanged. Source
• New: Long-term debt rose to $83.66 billion at June 30, 2026, from $58.75 billion at March 31, 2026, according to the two releases. Source
• New: A May 2026 headcount reduction affected approximately 8,000 employees, most of whom are to leave reported headcount by the end of the third quarter. Source

Revenue and user growth

• Revenue rose 28 percent: Revenue was $60.80 billion, up 28% year-over-year, or 27% excluding foreign exchange effect. Revenue was $47.52 billion a year earlier. Source
• Daily users reached 3.60 billion: Family daily active people averaged 3.60 billion in June 2026, up 3% year-over-year. Source
• Diluted EPS fell 13 percent: Diluted EPS was $6.18 against $7.14 a year earlier. Net income was $15.85 billion against $18.34 billion. Source

Segments and ad pricing

• Family of Apps drove revenue: Family of Apps revenue was $60.37 billion, including advertising of $59.36 billion. Its operating income was $23.39 billion against $24.97 billion. Source
• Reality Labs loss held steady: Reality Labs revenue was $431 million, with an operating loss of $4.62 billion against $4.53 billion a year earlier. Source
• Ad impressions and pricing rose: Ad impressions across Family of Apps rose 14% year-over-year, and average price per ad rose 12% over the same period. Source

“The results are already showing, and I'm optimistic about the potential ahead.”

Mark Zuckerberg, Meta founder and CEO

Costs and operating margin

• Costs rose 55 percent: Total costs and expenses were $42.03 billion, up 55% year-over-year, against $27.08 billion a year earlier. Source
• Operating margin fell to 31 percent: Income from operations was $18.78 billion, down 8%. Operating margin was 31% against 43% a year earlier. Source
• Research and development expense rose: Research and development expense was $21.66 billion against $12.94 billion. Marketing and sales was $3.43 billion against $2.98 billion. Source
• Effective tax rate rose to 16%: The provision for income taxes was $2.91 billion, an effective tax rate of 16% against 11% a year earlier. Source

Headcount and severance

• Headcount fell 1 percent: Headcount was 75,472 at June 30, 2026, down 1% year-over-year. Source
• About 8,000 roles affected in May: Approximately 8,000 employees were affected by the May 2026 headcount reduction. Most are to leave reported headcount by the end of the third quarter. Source
• Severance expense of $1.18 billion: Severance expenses of $1.18 billion were recorded in connection with the May 2026 headcount reduction. Source

Capital, cash and debt

• Operating cash flow was $31.86 billion: Operating cash flow was $31.86 billion. Free cash flow was $784 million, against $8.55 billion a year earlier. Source
• Capital expenditures reached $31.08 billion: Capital expenditures, including finance lease principal payments, were $31.08 billion in the quarter, against $17.01 billion a year earlier. Source
• Long-term debt rose to $83.66 billion: Long-term debt was $83.66 billion at June 30, 2026, up from $58.75 billion at March 31, 2026. Cash and marketable securities were $90.26 billion. Source
• Dividends paid, no buybacks in quarter: Dividend and dividend equivalent payments were $1.35 billion. No Class A common stock was repurchased in the quarter, against $10.17 billion a year earlier. Source

Guidance and investment

• Third quarter revenue range set: Third quarter 2026 total revenue is expected at $61-64 billion, with foreign currency assumed to be an approximately 1% headwind to growth. Source
• Full-year expense range raised at low end: Full-year 2026 total expenses are expected at $165-169 billion, against $162-169 billion previously. The low end was raised. Source
• Capital expenditure range narrowed: Full-year 2026 capital expenditures are expected at $130-145 billion, narrowed from $125-145 billion, including finance lease principal payments. Source

Legal and regulatory matters

• Youth-related trials ahead: Scrutiny of youth-related issues continues in several markets. U.S. trials scheduled this year may result in a material loss. Source
• Second-quarter legal charges recorded: The company recognized $2.40 billion of charges related to legal proceedings in the second quarter. Source
• Expense guidance absorbs legal charges: The low end of the full-year expense range was raised to include the second-quarter legal charges, which the release describes as recognized in that quarter. Source

Coming up, as management said on 29 July 2026

• Third quarter revenue range: Third quarter 2026 total revenue is the next guided period, with a range of $61-64 billion. Source
• Headcount drops by quarter end: Most employees affected by the May 2026 reduction are expected to no longer appear in reported headcount by the end of the third quarter. Source
• U.S. youth-related trials this year: A number of youth-related trials are scheduled for this year in the U.S. Source

Figures management reported

Risks management discussed

• Regulatory: Youth-related scrutiny in several markets and U.S. trials scheduled this year may ultimately produce a material loss. Source
• External: The third-quarter guidance assumes a foreign currency headwind of about 1% to year-over-year revenue growth at current exchange rates. Source
• Regulatory: The 15-17% tax rate guidance for the remaining quarters is conditional on no change to the tax landscape. Source

Earlier plans management reported on

• Not stated: Management continues to expect 2026 operating income to exceed 2025 operating income. Source
• Not stated: Most of the roughly 8,000 employees affected by the May 2026 reduction are expected to leave reported headcount by the end of the third quarter. Source

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.