Meta expects Q3 2026 revenue between $61 bln and $64 bln
Company raises full-year 2026 expense outlook to $165-169 bln as AI spending ramps
Meta narrows 2026 capital expenditures outlook to $130-145 bln
Q2 results and profitability
Social media giant's Q2 revenue rose 28% yr/yr, beating analyst expectations
Q2 net income and EPS declined as costs surged, including legal and severance charges
Operating margin fell to 31% from 43% a year earlier
Analyst coverage and valuation
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 57 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for Meta Platforms Inc is $820.00, about 38.2% above its July 28 closing price of $593.41
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 19 three months ago
Revenue growth and cost drivers
Advertising growth - Revenue growth was driven by a 14% rise in ad impressions and a 12% increase in average price per ad
Cost increases - Total costs and expenses rose 55% yr/yr, including $2.4 bln in legal charges and $1.18 bln in severance expenses from May 2026 headcount reduction
AI initiatives - Co said artificial intelligence is accelerating its core business and powering new products, per CEO Mark Zuckerberg
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