Image Source: TradingView
By Brian Nelson, CFA
Meta Platforms (META) recently reported mixed second quarter results with revenue beating expectations but GAAP earnings per share coming up a bit short of the consensus forecast. Revenue grew 28%, to $60.8 billion, but income from operations fell 8% in the period. Net income dropped 14%, while diluted earnings per share fell 13%, to $6.18. Consensus pegged estimates of $60.29 billion for sales and $7.22 in GAAP earnings per share.
CEO Mark Zuckerberg had the following to say in the press release:
AI is accelerating our core business today, powering our next generation of products, and opening the door to entirely new enterprise opportunities. The results are already showing, and I’m optimistic about the potential ahead.
Family daily active people (DAP) was 3.6 billion on average for June 2026, an increase of 3% year-over-year. Ad impressions increased 14%, while the average price per ad increased 12% year-over-year. Cash flow from operating activities was $31.86 billion, and free cash flow was $784 million, after deducting hefty capital expenditures of $31.08 billion. Cash and marketable securities were $90.26 billion as of June 30, while long-term debt stood at $83.66 billion as of June 30.
Looking to the third quarter of 2026, management expects total revenue in the range of $61-$64 billion compared to consensus of $63.2 billion. Full year 2026 total expenses are expected in the range of $165-$169 billion, and Meta continues to expect to deliver operating income in 2026 that is above that of 2025. Capital expenditures are expected in the range of $130-$145 billion, narrowed from its prior outlook of $125-$145 billion. Though its earnings and free cash flow weren’t great in the second quarter, we’re taking a long-term view of Meta in the Dividend Growth Newsletter portfolio. Shares yield 0.3% at the time of this writing.
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Brian Nelson owns shares in SPY, SCHG, QQQ, QQQM, DIA, VOT, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, QQQM, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE, DIA, RSP, SCHG, QQQ, QQQM, and VOO. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.
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