[Little Bear Team] Meta 26Q2 Quick Review: Results Miss, Capex Grows Significantly

English summary

In 26Q2, Meta's revenue was in line with expectations, and EPS slightly missed. Meta achieved revenue of $60.801B in 26Q2, +28% YoY and +8% QoQ, roughly in line with expectations ($60.273B). Net profit was $15.848B, -41% YoY and -14% QoQ, below market expectations ($18.590B). EPS was $6.18, -41% YoY and -13% QoQ, below market expectations ($7.21), mainly due to a $2.4B litigation charge and $1.18B severance costs. Guidance was slightly below market expectations, while maintaining full-year operating income above 2025 guidance. The company guides 26Q3 revenue of $61.0-64.0B, +19%-25% YoY and +0.3%-5.3% QoQ, with the midpoint slightly below market expectations ($63.206B). It also maintains its full-year operating income above 2025 guidance.