Meta reported $60.8 billion in second quarter revenue, up 28% annually, slightly outpacing the $60.29 billion analysts projected.
The tech company’s earnings per share were $6.18, below analyst expectations of $7.22 a share.
Meta shares fell as much as 10%.
Meta reported a 14% decrease in net income in its second quarter earnings, as the company faces ongoing legal battles over social media access for teens nationwide.
However, the tech company reported an increase in revenue overall with $60.8 billion for the second quarter, up 28% annually. The figure slightly outpaced the $60.29 billion estimate analysts had projected.
The company noted that its third quarter earnings report will incorporate the $2.4 billion charges related to legal proceedings recognized in the second quarter, bumping up the company’s total expenses to the $165-169 billion range.
“We continue to see scrutiny on youth-related issues in several markets and have a number of youth-related trials scheduled for this year in the U.S. which may ultimately result in a material loss,” Susan Li, chief financial officer of Meta, said.
Meta’s earnings per share were $6.18, below analyst expectations of $7.22 a share. The company’s stock price was down as much as 10% Wednesday, falling to $583 per share ahead of the second quarter earnings report.
Daily active users on the platform increased 3% year over year to 3.6 billion. Instagram reached 2 billion daily active users, and Threads crossed 500 million monthly active users, according to founder and CEO Mark Zuckerberg, making it the fastest-growing conversation app ever.
The company forecasted that third quarter 2026 total revenue to be in the range of $61-64 billion. Meta also narrowed its capital expenditure on the low end from $125 billion to $130-$145 billion 2026 capital expenditures to account for AI spending.
“AI is accelerating our core business today, powering our next generation of products, and opening the door to entirely new enterprise opportunities,” said Zuckerberg. “The results are already showing, and I’m optimistic about the potential ahead.”
Though Meta has heavily invested in its AI offerings, the company suffered one blunder earlier this month. The company removed its Muse Image AI feature from Instagram earlier this month, just three days after its unveiling. The decision comes after a wave of backlash from the social media platform’s users, as well as public entities like CAA and SAG-AFTRA.
A spokesperson for Meta at the time said they heard the feedback that Muse Image “missed the mark.” Zuckerberg, however, stated that their AI investments are “paying off” on the earnings call.
