Meta books 28% more revenue but profit under pressure
Meta, the parent company of Instagram and Facebook, generated revenue of $60.8 billion in the second quarter of 2026, achieved, an increase of 28% compared with a year earlier. The growth was mainly driven by stronger advertising revenues, with artificial intelligence (AI) playing an increasingly important role in improving ad performance and developing new products.
Despite the robust revenue growth, net profit fell by 14% to $15.8 billion. The operating margin declined from 43-31%. According to Meta, the higher costs are mainly the result of heavy investments in AI infrastructure, legal expenses of $2.4 billion and restructuring costs following the round of layoffs in May.
Chief executive Mark Zuckerberg speaks of a tipping point for the company. “AI is accelerating our core activities today, forming the foundation for the next generation of products and opening the door to entirely new business opportunities,” the CEO said.
The advertising division remained the main growth engine. The number of ad impressions rose by 14%, while the average ad price increased by 12%. On a daily basis, an average of 3.6 billion people used at least one of Meta’s platforms, including Facebook, Instagram, WhatsApp and Messenger.
At the same time, Meta is investing an unprecedented amount in AI. Capital expenditure in the past quarter totalled more than $31 billion. For the whole of 2026, the group expects to invest between $130-145 billion, mainly in data centres and AI infrastructure.
For the third quarter, Meta is forecasting revenue of between $61-64 billion dollars. The company also expects that operating profit for the whole of 2026 will be higher than in 2025, despite the persistently high level of investment.
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