"AI is accelerating our core business, driving the development of next-generation products, and opening up entirely new opportunities for enterprise applications," said Meta founder and CEO Mark Zuckerberg. "The results are already visible, and I am confident in the future potential."
Meta Q2 2026 Financial Highlights
Meta Q2 2026 Operating and Other Financial Highlights
The Family of Apps daily active people (DAP) averaged 3.60 billion in June 2026, a 3% increase year-over-year. Ad impressions across the Family of Apps increased 14% year-over-year. The average price per ad increased 12% year-over-year. Revenue reached $60.8 billion, a 28% increase year-over-year. On a constant currency basis, revenue grew 27% year-over-year. Total costs and expenses were $42.0 billion, a 55% increase year-over-year, including $2.4 billion in legal-related costs and $1.2 billion in severance costs related to the May 2026 layoffs. Capital expenditures, including principal payments on finance leases, were $31.1 billion. Dividend and dividend equivalent payments were $1.4 billion. Cash, cash equivalents, and marketable securities totaled $90.3 billion as of June 30, 2026. Long-term debt stood at $83.7 billion as of June 30, 2026. Cash provided by operating activities was $31.9 billion, and free cash flow was $784 million. Headcount was 75,472 as of June 30, 2026, a 1% decrease year-over-year. This figure includes approximately 8,000 employees impacted by the May 2026 layoffs, the majority of whom will no longer be counted in headcount by the end of the third quarter of 2026.
Chief Financial Officer Outlook and Commentary
We expect total Q3 2026 revenue to be in the range of $61.0 billion to $64.0 billion. This guidance assumes that, based on current exchange rates, foreign currency headwinds will be a negative impact of approximately 1% on year-over-year total revenue growth. We are raising the lower end of our expense guidance to incorporate the $2.4 billion legal-related costs recognized in the second quarter. We now expect total 2026 expenses to be in the range of $165 billion to $169 billion. We continue to expect operating profit for the full year to be higher than the 2025 operating profit. We expect 2026 capital expenditures, including principal payments on finance leases, to be in the range of $130 billion to $145 billion, narrowing from the previous range of $125 billion to $145 billion. Barring any significant changes in the tax environment, we expect the tax rate for the remaining quarters of 2026 to be in the range of 15% to 17%, up from the previous guidance of 13% to 16%. Finally, we continue to monitor active legal and regulatory matters that could materially impact our business and financial results. For example, we face ongoing scrutiny related to youth-related issues in several markets, and multiple youth-related lawsuits are scheduled for trial in the U.S. this year, which could ultimately result in significant losses.
Segment Performance
Financial results are reported across two reportable segments: Family of Apps (FoA) and Reality Labs (RL). FoA includes Facebook, Instagram, Messenger, WhatsApp, and other services. RL includes consumer hardware, software, and content related to virtual and augmented reality. (In billions of U.S. dollars)
Meta's RL division generated revenue of $431 million in the second quarter, while recording an operating loss of $4.6 billion. Wall Street had anticipated the division to report Q2 revenue of $423.4 million and a loss of approximately $5.07 billion.
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