[Guotai Haitong Communications] Meta: Ad Revenue Beats, Capex Lower Bound Raised Again 0730

English summary

Event Commentary: Meta released Q2 2026 results. Our commentary is as follows: Q2 Review: Ad revenue beat Bloomberg expectations, margin dragged by expenses. [Meta Q2] Financial metrics vs Bloomberg forecasts (Unit: $100M, EPS in USD/share): Q2 revenue: 60.801 vs 60.172, +1.0%; Ad revenue: 59.363 vs 58.854, +0.9%; Family of Apps revenue: 60.370 vs 59.775, +1.0%; Reality Labs revenue: 0.431 vs 0.440, -2.0%; Diluted EPS: 6.18 vs 7.20, -14.1%; Capex: company basis 31.078, yoy +82.7%, qoq +56.6%; of which property additions 30.116 vs Bloomberg model 33.460, about 10.0% below expectations.