Meta Drops 9% After Q2 EPS Miss
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Meta stock dropped as much as 9% on Thursday after Q2 results missed EPS estimates ($6.18 actual vs. $7.14 expected) while beating on revenue ($60.8B vs. $60.2B).
- Meta raised the lower end of its 2026 capital expenditure guidance to $135B–$145B (from $125B–$145B), with the bulk earmarked for data center build-out.
- Meta's advertising revenue came in at $59.3 billion, topping expectations of $59.07 billion.
- Gil Luria of D.A. Davidson labeled the quarter 'barely passable,' noting cash flow was only slightly positive and revenue guidance fell short of expectations.
- Investors had already been concerned about rising capital expenditures and dwindling cash flow at Meta, and the Q2 report did little to change that picture.
Why it matters: The 9% selloff shows investors won't overlook a Q2 EPS miss ($6.18 vs. $7.14 expected) just because Meta lifted its 2026 capex floor to $135B. D.A. Davidson's Gil Luria flagged only 'barely positive' cash flow and soft revenue guidance — the two metrics Wall Street had been watching as the AI infrastructure spending ramps.
