Meta Platforms files 8-K: results of operations
Item 2.02 Results of Operations and Financial Condition.
Meta is making reference to non-GAAP financial information in both the press release and the conference call. A reconciliation of GAAP to non-GAAP results is provided in the attached Exhibit 99.1 press release.
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Meta Reports Second Quarter 2026 Results
MENLO PARK, Calif. – July 29, 2026 – Meta Platforms, Inc. (Nasdaq: META) today reported financial results for the quarter ended June 30, 2026.
"AI is accelerating our core business today, powering our next generation of products, and opening the door to entirely new enterprise opportunities," said Mark Zuckerberg, Meta founder and CEO. "The results are already showing, and I'm optimistic about the potential ahead." Second Quarter 2026 Financial Highlights
Second Quarter 2026 Operational and Other Financial Highlights
• Family daily active people (DAP) – DAP was 3.60 billion on average for June 2026, an increase of 3% year-over-year.
• Ad impressions – Ad impressions delivered across our Family of Apps increased by 14% year-over-year.
• Average price per ad – Average price per ad increased by 12% year-over-year.
• Revenue – Revenue was $60.80 billion, an increase of 28% year-over-year. Revenue on a constant currency basis would have increased by 27% year-over-year.
• Costs and expenses – Total costs and expenses were $42.03 billion, an increase of 55% year-over-year. This includes $2.40 billion of charges related to legal proceedings and $1.18 billion of severance expenses in connection with the May 2026 headcount reduction.
• Capital expenditures – Capital expenditures, including principal payments on finance leases, were $31.08 billion.
• Capital return program – Dividend and dividend equivalent payments were $1.35 billion.
• Cash, cash equivalents, and marketable securities – Cash, cash equivalents, and marketable securities were $90.26 billion as of June 30, 2026.
• Long-term debt – Long-term debt was $83.66 billion as of June 30, 2026.
• Cash flow – Cash flow from operating activities was $31.86 billion, and free cash flow was $784 million. (1)
• Headcount – Headcount was 75,472 as of June 30, 2026, a decrease of 1% year-over-year. Our reported headcount includes approximately 8,000 employees impacted by the May 2026 headcount reduction, the majority of whom will no longer be reflected in our headcount by the end of the third quarter of 2026.
(1) For more information on our free cash flow non-GAAP financial measure, see the sections entitled "Non-GAAP Financial Measures" and "Reconciliation of GAAP to Non-GAAP Results" in this press release.
CFO Outlook Commentary
We expect third quarter 2026 total revenue to be in the range of $61-64 billion. Our guidance assumes foreign currency is an approximately 1% headwind to year-over-year total revenue growth, based on current exchange rates.
We are raising the lower-end of our expense outlook to incorporate the $2.4 billion charges related to legal proceedings recognized in the second quarter. We now expect full year 2026 total expenses to be in the range of $165-169 billion.
We continue to expect to deliver operating income this year that is above 2025 operating income.
We anticipate 2026 capital expenditures, including principal payments on finance leases, to be in the range of $130-145 billion, narrowed from our prior outlook of $125-145 billion.
Absent any changes to our tax landscape, we expect our tax rate for the remaining quarters of 2026 to be between 15-17%, an increase from our prior outlook of 13-16%.
Finally, we continue to monitor active legal and regulatory matters that could significantly impact our business and financial results. For example, we continue to see scrutiny on youth-related issues in several markets and have a number of youth-related trials scheduled for this year in the U.S., which may ultimately result in a material loss.
Webcast and Conference Call Information
Meta will host a conference call to discuss its results at 1:30 p.m. PT / 4:30 p.m. ET today. The live webcast of the call can be accessed at the Meta Investor Relations website at investor.atmeta.com, along with the company's earnings press release, financial tables, and slide presentation.
Following the call, a replay will be available at the same website. Transcripts of conference calls with publishing equity research analysts held today will also be posted to the investor.atmeta.com website.