MoneyJuly 29, 2026via SiliconAngle
Meta’s AI bill swallows nearly all of its free cash flow as profit falls 14%
Why it matters
Meta's massive AI infrastructure investment is reshaping its financial profile and investor expectations—a critical signal for the industry's compute-buildout economics and whether big tech can sustain dual capital spending at scale.
Key signals
- Q2 2026 diluted EPS: $6.18, down from $7.14 YoY (14% decline)
- Stock fell >8% in after-hours trading on earnings miss
- Operating costs rose 55% YoY
- AI capex consuming nearly all free cash flow
- Revenue beat expectations; earnings miss driven by cost structure
- Period ended June 30, 2026
The hook
Meta's AI capex is now consuming nearly all free cash flow. Earnings down 14% despite beating revenue.
Meta Platforms Inc.’s shares fell more than 8% in after-hours trading today after the social networking company beat revenue expectations for its fiscal 2026 second quarter but missed badly on earnings as costs rose 55%. For the quarter that ended on June 30, Meta reported diluted earnings per share of $6.18, down from $7.14 in […]