Meta misses on Q2 earnings, stock tumbles
Daniel Howley· Technology Editor
Thu, July 30, 2026 at 1:49 AM GMT+5:30
2 min read
Meta (META) reported its second quarter results after the bell on Wednesday, missing on earnings per share (EPS) but beating on revenue. The company also missed the midpoint for its Q3 revenue outlook, though it narrowed its planned capital expenditure range for 2026
Meta stock fell nearly 8% immediately following the results
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For the quarter, Meta saw EPS of $6.18 on revenue of $60.8 billion. Analysts were anticipating EPS of $7.14 and revenue of $60.2 billion, based on Bloomberg consensus estimates
The company reported EPS of $7.14 and revenue of $47.51 billion in the same period a year ago
For the third quarter, Meta anticipates revenue between $61 billion and $64 billion. Wall Street was looking for a midpoint of $63.1 billion
Meta’s Q2 advertising revenue came in at $59.3 billion versus expectations of $59.07 billion
Importantly, the company raised the bottom line of its capital expenditure estimates, increasing them to between $135 billion and $145 billion from $125 to $145 billion
On Tuesday, Meta and BlackRock announced they are entering into an agreement to build a $14 billion, 1-gigawatt data center in Texas. BlackRock will hold an 80% stake in the site, while Meta will get the remaining 20%
Earlier this month, Meta CEO Mark Zuckerberg told Bloomberg that it makes sense for the company to explore leasing out some of its data center capacity to customers.Â
It’s not clear how Meta would structure any deals, but it could turn toward SpaceX (SPCX) for inspiration. That company has set up multibillion-dollar arrangements to rent access to its AI capacity to Anthropic (ANTH.PVT) and Google (GOOG, GOOGL)
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Meta could also choose to operate similarly to a neocloud company like CoreWeave (CRWV) and simply rent out its hardware as is
The company also debuted its new Musk Spark 1.1 model this month and revealed an aggressive pricing scheme that significantly undercuts the cost of using models from OpenAI and Anthropic
Meta charges developers $1.25 per million input tokens and $4.25 per million output tokens. Anthropic currently charges $5 per million input tokens and $25 per million output tokens for its Opus 4.8 model, which Meta compares with Spark 1.1
Email Daniel Howley at dhowley@yahoofinance.com. Follow him on X at@DanielHowley
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