Wall Street targets imply 32% upside for $META despite a 14% EPS miss and 91% free cash flow drop in Q2 2026.
Meta Platforms reported Q2 2026 diluted EPS of $6.18, missing consensus by 14.42% and ending a six-quarter beat streak. Shares fell as much as 11.7% after the July 29 release, despite revenue beating expectations at $60.80 billion versus $60.29 billion forecasted.
Costs surged 55% to $42.03 billion, driven by $2.40 billion in legal charges and $1.18 billion in severance from an 8,000-employee reduction. Operating margin compressed to 31% from 43% year-over-year, while net income declined 13.57%. Free cash flow collapsed to $784 million from $8.55 billion in the prior year.
Despite the miss, 55 of 62 covering analysts maintain Buy ratings, with an average 12-month price target of $768.58, implying 31.84% upside from the current $587.94. Some bulls, including Rosenblatt’s Barton Crockett, target $1,000, citing AI-driven ad growth and Llama monetization.