Meta Platforms Q2 Earnings Call Highlights

Meta Platforms Q2 Earnings Call Highlights

Revenue rose 28% year over year to $60.8 billion , driven primarily by a 27% increase in advertising revenue, higher ad impressions and stronger pricing.

User engagement also increased, with Instagram reaching 2 billion daily active users.

Meta said its AI investments are improving content recommendations, ad performance and product development.

Advantage+ advertising products surpassed a $75 billion annual revenue run rate, while AI business agents and consumer assistants continued to expand.

AI infrastructure spending is accelerating: second-quarter capital expenditures reached $31.1 billion, and Meta raised its 2026 expense outlook while narrowing its capital-expenditure forecast to $130 billion–$145 billion.

The company expects third-quarter revenue of $61 billion–$64 billion.

Meta Platforms NASDAQ: META reported second-quarter 2026 revenue growth of 28% as the company said artificial intelligence initiatives improved content recommendations, advertising performance and product development, while it continued to accelerate spending on data centers and other AI infrastructure.

Chief Executive Officer Mark Zuckerberg said 3.6 billion people used at least one Meta app daily during the quarter.

Instagram reached 2 billion daily active users, while Threads surpassed 500 million monthly active users, according to Zuckerberg.

WhatsApp reached a record of 30 million messages per second during the World Cup final.

Chief Financial Officer Susan Li said total revenue rose 28% year over year to $60.8 billion, or 27% on a constant-currency basis.

Family of Apps revenue increased 28% to $60.4 billion, including $59.4 billion in advertising revenue, up 27%.

Ad impressions across Meta’s services increased 14%, supported by engagement and user growth as well as ad-load optimization.

Average price per ad rose 12%, which Li attributed to gains in ad performance, improved macroeconomic conditions compared with the prior-year quarter and currency tailwinds.

Family of Apps other revenue reached $1 billion for the first time, rising 73% from a year earlier, primarily because of WhatsApp paid messaging and subscriptions.

Reality Labs revenue increased 16% to $431 million, as growth in AI glasses revenue more than offset lower Quest headset sales.

Meta said recommendation improvements contributed to stronger engagement.

Global time spent on Instagram grew at a double-digit rate, while Facebook video time spent rose 9% globally and more than 10% in the U.S. and Canada.

Li said the company is increasingly using large language models to understand content, improve ranking systems and generate better training data.

Meta processed every public Reels and Feed post on Instagram through an LLM earlier this year, Li said.

Its largest Reels ranking release to date generated a 15-basis-point increase in Instagram sessions, with strength in reshares and time spent.

The company is extending the approach to Feed, where early results appear comparable, she said.

Zuckerberg said AI investments are improving ad relevance and conversions on Facebook and Instagram.

Meta has also expanded adoption of AI creative tools, with 9 million small businesses now using at least one such tool.

Li said Meta’s AI-powered Advantage+ end-to-end advertising offerings reached an annual revenue run rate of more than $75 billion during the quarter.

The company also introduced Meta Generative Recommender, which uses LLMs to assess ad content and user preferences together rather than...