Meta Platforms (NASDAQ: META) delivered a mixed second-quarter 2026 earnings report that rattled markets and sent its stock tumbling sharply in late July.
The company posted $60.8 billion in revenue for Q2 2026, representing a strong 28% increase compared to the same period one year prior.
Despite solid top-line growth, diluted earnings per share came in at $6.18, falling well short of analyst expectations of $7.22.
Free cash flow collapsed dramatically during the quarter, dropping to just $784 million from over $8.5 billion the prior year, a staggering 91% decline.
Meta shares fell 10% on July 30, marking the stock’s worst single-day performance of the year and capping an 11-day losing streak.
Because CEO and co-founder Mark Zuckerberg owns approximately 13% of Meta, the post-earnings slide wiped nearly $18 billion from his personal net worth.
Meta also revised its 2026 capital expenditure guidance upward to between $130 billion and $145 billion, raising the previous low-end estimate of $125 billion.
The updated spending forecast sent a clear signal to investors that the company has no intention of pulling back on its aggressive artificial intelligence investment strategy.
Meta shares have partially recovered since the post-earnings selloff but remain down 9% year to date, leaving the stock in negative territory for 2026.
Some analysts argue the market’s reaction was excessive and that Meta’s shares now appear attractively valued at current levels, presenting a potential buying opportunity for investors willing to bet on long-term AI returns.
The volatility surrounding Meta underscores a broader tension on Wall Street between patience for long-term AI infrastructure spending and near-term expectations for profitability and cash generation.
With capital expenditure commitments now stretching into the hundreds of billions, Meta’s ability to eventually convert that spending into meaningful returns will define the next chapter of Zuckerberg’s company.
