NewsBite analysis · AI, Business, FinTech
Financial Times
Meta shares drop on falling profits and weak sales forecast
Meta's latest earnings report revealed a 14% drop in net income to $15.8 billion, which was below analysts' expectations. Despite an overall revenue increase of 28% to $60.8 billion in Q2, concerns over rising costs, which surged by 55% to $42 billion, overshadowed this growth. Looking ahead, the company projected sales between $61 billion and $64 billion for the next quarter, falling short of analyst forecasts. This dip in performance raises questions about Meta's ongoing investments in AI, particularly given the costly competition in the tech landscape.
MonitorConfidence: HighShort term horizonReputational risk: High
Published 29 Jul 2026, 20:40 UTC1 min read
Visit original article ↗Lead image — Financial Times
Summary
TL;DR
- Net income decreased 14% to $15.8 billion, missing estimates.
- Revenue increased 28% to $60.8 billion, slightly above expectations.
- Costs rose 55% to $42 billion, prompting concerns.
- Sales forecast for next quarter projected below analyst expectations.
- Share price dropped 5% in after-hours trading.
Interesting facts
- Meta's capital expenditure projection for 2026 increased to between $130 billion and $145 billion.
- $2.4 billion in legal charges impacted the profit margin for Q2.
Coverage gaps