Meta’s Q2 earnings miss was driven by $3.6 billion in legal and severance costs, masking 27% ad revenue growth to $59 billion.
Meta Platforms (NASDAQ:META) reported Q2 earnings below expectations due to $3.6 billion in one-time legal and severance charges, despite revenue rising 27.96% year over year to $60.801 billion. Core advertising revenue grew 27% to $59.363 billion, with ad impressions and prices both increasing.
Advertising revenue expansion outpaced consensus, while operating cash flow rose 24.65% to $31.862 billion. The company’s aggressive AI infrastructure spending, projected at $130 to $145 billion by 2026, remains a key growth driver. Analysts largely maintained Buy ratings, citing a 19x forward earnings multiple.
Shares dropped 7.95% to $539.03 following the report, though the decline was attributed to non-operational charges rather than underlying business performance.