Meta reported second quarter revenue of $60.8 billion, up 28% year over year, but shares fell 5% after the company raised the lower end of its 2026 capital expenditure outlook to a range of $130 billion to $145 billion. Diluted earnings per share declined 13% to $6.18, missing analysts’ expectations of $7.19, while operating income fell 8% to $18.8 billion. Capital expenditures reached $31.08 billion during the quarter, nearly double the $17.01 billion spent a year earlier, and operating margin contracted to 31% from 43% year over year. Free cash flow plummeted to $784 million from $8.55 billion a year earlier, as investors question whether Meta can generate sufficient returns from its massive AI infrastructure investments.
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