Meta Platforms Inc.META
▼ NegativeCapitalrelevance
Q2 earnings miss and 90% free cash flow decline due to AI spending

Meta Platforms delivered a mixed second-quarter 2026 earnings report that sent shares tumbling despite posting 28% year-over-year revenue growth. The company's aggressive AI infrastructure investments drove expenses up 55%, resulting in a 90% decline in free cash flow and a 13% drop in earnings per share. With capital expenditure guidance for 2026 raised to $130–$145 billion, investors are questioning whether the massive AI spending will ultimately pay off. Analyst sentiment remains divided, with bulls viewing the selloff as an opportunity while bears point to mounting profitability pressures and a lack of concrete demand signals for the company's AI investments.
Meta Platforms Inc.Q2 earnings miss and 90% free cash flow decline due to AI spending
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