Meta Revenue Jumps 28 Percent to US$60.8 Bln as AI Drives Ad Growth

July 30, 2026
By Mintesinot Nigussie

Meta Platforms reported a 28 percent increase in quarterly revenue as artificial intelligence strengthened its advertising business, prompting the company to raise its full-year expense outlook while maintaining one of the technology sector's largest investment programmes in AI infrastructure. Revenue reached 60.8 billion US dollars in the quarter ended June 30, up from a year earlier, as both advertising demand and user engagement improved. Ad impressions across Meta's family of applications rose 14 percent, while the average price per advertisement increased 12 percent.

The company said its platforms attracted an average of 3.6 billion daily active users in June, a 3 percent increase from the same period last year. Chief Executive Officer Mark Zuckerberg said the company's artificial intelligence investments are already translating into business growth. "AI is accelerating our core business today, powering our next generation of products and opening the door to entirely new enterprise opportunities," he said in a statement. "The results are already showing, and I'm optimistic about the potential ahead."

The stronger top-line performance came alongside a sharp rise in spending. Total costs and expenses climbed 55 percent to 42.03 billion US dollars, reflecting 2.4 billion US dollars in legal charges and 1.18 billion US dollars in severance expenses related to workforce reductions announced in May. Meta continued to channel cash into artificial intelligence infrastructure, with capital expenditure reaching 31.08 billion US dollars during the quarter. The company narrowed its expected capital expenditure range for 2026 to between 130 billion US dollars and 145 billion US dollars, compared with its previous guidance of 125 billion US dollars to 145 billion US dollars.

Operating cash flow totalled 31.86 billion US dollars, while free cash flow declined to 784 million US dollars as investment spending accelerated. The company ended the quarter with 90.26 billion US dollars in cash, cash equivalents and marketable securities and 83.66 billion US dollars in long-term debt. It returned 1.35 billion US dollars to shareholders through dividends during the period. Meta's workforce stood at 75,472 employees at the end of June, down 1 percent from a year earlier. The total includes about 8,000 employees affected by the May workforce reduction, most of whom are expected to leave the reported headcount by the end of the third quarter.

For the third quarter, Meta forecast revenue of between 61 billion US dollars and 64 billion US dollars, assuming foreign exchange will reduce year-on-year revenue growth by about 1 percent. The company also raised the lower end of its full-year expense forecast to between 165 billion US dollars and 169 billion US dollars to reflect second-quarter legal charges. It said operating income for 2026 is still expected to exceed the previous year's level. Meta cautioned that legal and regulatory risks remain significant, citing continued scrutiny over youth-related issues in several markets and multiple trials scheduled in the United States this year that could result in material losses.

Source: FSX Business News