Meta Announces Second Quarter 2026 Operational and Other Financial Highlights:
Family Daily Active People (DAP) – In June 2026, DAP averaged 3.6 billion, an increase of 3% year-over-year.
Ad Impressions – Ad impressions across all of our applications increased by 14% year-over-year.
Average Price per Ad – The average price per ad increased by 12% year-over-year.Revenue – Revenue was $60.8 billion, an increase of 28% year-over-year. On a constant currency basis, revenue would have increased by 27% year-over-year.
Diluted EPS was $6.18, a decrease of 13% year-over-year.
Costs and Expenses – Total costs and expenses were $42.03 billion, an increase of 55% year-over-year. This includes $2.4 billion in expenses related to legal proceedings and $1.18 billion in severance costs associated with workforce reductions in May 2026.
Capital Expenditures – Capital expenditures (including principal payments on finance leases) were $31.08 billion.
Capital Return Program – Dividends and dividend equivalent payments amounted to $1.35 billion.
As of June 30, 2026, cash, cash equivalents, and marketable securities totaled $90.26 billion.
Long-term debt — As of June 30, 2026, long-term debt stood at $83.66 billion.
Cash flow — Cash flow from operating activities amounted to $31.86 billion, and free cash flow was $784 million.
CFO Outlook Commentary
We expect total revenue for the third quarter of 2026 to be in the range of $61 billion to $64 billion. Based on current exchange rates, our forecast assumes that foreign exchange fluctuations will have an approximately 1% adverse impact on year-over-year total revenue growth.
We have raised the lower end of our spending outlook to incorporate the $24 billion in legal-related expenses recognized in the second quarter. We now expect total spending for the full year 2026 to be between $165 billion and $169 billion.
We continue to expect operating income for this year to exceed that of 2025.
We now expect capital expenditures for 2026, including principal payments on finance leases, to range between $130 billion and $145 billion, compared to the previous forecast of $125 billion to $145 billion. Total full-year spending is expected to be between $165 billion and $169 billion, versus the company's original projection of $162 billion to $169 billion.
Assuming no changes in the tax environment, we expect our effective tax rate for the remaining quarters of 2026 to be between 15% and 17%, higher than our previous forecast of 13% to 16%.
Finally, we remain attentive to legal and regulatory developments that could materially affect our business and financial performance. For example, we note that regulatory scrutiny related to adolescent issues continues across multiple markets, and several adolescent-related trials are scheduled to commence in the United States this year, which could ultimately result in significant losses.
Mark Zuckerberg, Founder and CEO of Meta, stated: 'Artificial intelligence is accelerating the growth of our core business, powering our next generation of products, and opening doors to entirely new enterprise opportunities. The results are already visible, and I am confident in the potential ahead.'
Editor/Liam