Meta Platforms reported second-quarter revenue of $60.8 billion, slightly above Wall Street expectations, but profits came in below forecast and the company’s stock fell nearly 10% in after-hours trading.[14][3]
The Facebook parent said operating profit was $18.78 billion, 12% below expectations, and earnings per share were $6.18, missing estimates by 14%.[14][3] The company’s Reality Labs division, which develops AI smart glasses and other products, posted an operating loss of $4.53 billion, wider than a year earlier.[1][2]
Meta’s heavy AI spending also pressured cash generation. The company’s second-quarter capital expenditures reached about $31.08 billion, and free cash flow dropped more than 90% from a year earlier to $784 million, the lowest level since the third quarter of 2022.[1][2][14]
Despite the weaker cash flow and investor concerns, Meta said it plans to keep investing in AI data centers, smart glasses and next-generation AI models, and it raised the low end of its full-year capital spending outlook to $130 billion from $125 billion.[1][2]
