MoneyThe story, in brief
Meta’s AI bill swallows nearly all of its free cash flow as profit falls 14%
Meta's AI capex is now consuming nearly all free cash flow. Earnings down 14% despite beating revenue.
The KeyNews take
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.
The key facts
6 to knowQ2 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
Go to the source
SiliconAnglesiliconangle.com
Publisher excerpt: 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…