Menlo Park tech giant Meta profit falls amid AI spend
PUBLISHED Jul 29, 2026, 5:35 PM ET
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Meta Platforms reported second-quarter 2026 results from Menlo Park showing strong revenue growth but weaker profitability as it ramped up artificial intelligence investment. Revenue rose 28% year-over-year to $60.8 billion, topping Wall Street forecasts, but net income declined 14% to $15.85 billion, or $6.18 per share, below analysts’ expectations of about $7.10. Results were pressured by a $2.4 billion charge for legal expenses and severance and sharply lower free cash flow, which dropped to $784 million. Meta raised 2026 capital expenditure guidance to $130–$145 billion and now expects total full-year expenses of $165–$169 billion, while user and advertising metrics continued to grow.
By Emily Rhodes | JQJO News
Timeline of Events
- On January 28, 2026, Meta reported strong fourth quarter earnings.
- On April 29, 2026, Meta posted higher first quarter revenue.
- On June 15, 2026, analysts anticipated massive artificial intelligence spending.
- On July 20, 2026, investors prepared for increased capital expenditure.
- On July 29, 2026, Meta reported second quarter revenue growth.
- On July 29, 2026, net income declined fourteen percent annually.
- On July 30, 2026, Meta shares dropped over seven percent.
- By October 2026, third quarter earnings reports will test valuation.
- Throughout 2027, infrastructure spending will likely pressure free cash flow.
- By 2028, artificial intelligence monetization efforts must prove highly profitable.
News Intelligence
- Meta stock slump rattles tech investors and broader market sentiment.
- Massive infrastructure spending reshapes national artificial intelligence hardware development standards.
- Technology investors, Silicon Valley corporations, and digital advertising industry stakeholders.
- Focus on verified financial filings and official corporate earnings statements.
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