Meta posts record revenue but absorbs $2.4 billion legal charge in Q2

Meta, the parent of Facebook and Instagram, announced Q2 2026 revenue of $60.8 billion, a 28% increase year over year, while net income slipped 14% to $15.85 billion, yielding earnings of $6.18 per share. The earnings beat revenue expectations but missed analysts' profit forecasts. The company recorded a $2.4 billion charge linked to legal proceedings, though it did not specify the cases, and a $1.18 billion severance cost tied to a May layoff of about 8,000 workers as it refocuses on artificial intelligence.

CFO Susan Li highlighted that active legal and regulatory matters, particularly youth-related trials in the United States, could materially impact the business. Capital spending is projected to rise to $130-$145 billion for 2026, largely to fund AI development, mirroring similar increases at Alphabet and Amazon. Meta also revealed a $10 billion joint venture with BlackRock to construct a data-center campus in El Paso, Texas, underscoring its AI-centric growth strategy.