【CITIC Securities Forward】Meta 2Q26 Quarterly Report Quick Review: LLM deeply integrated into content and recommendation algorithms, infrastructure plans aimed at maximizing 26-27 capacity

English summary

【Financial Overview】2Q26 total revenue of $60.801 billion (+28% YoY, consensus $60.2 billion), operating profit of $18.775 billion (-8% YoY, consensus $21.8 billion), corresponding to operating margin of 31% (-12ppts YoY), mainly due to $2.4 billion legal settlement costs and $1.18 billion May layoff severance. Excluding these one-time items, operating profit grew +9% YoY. Net profit of $15.848 billion (-14% YoY, consensus $18.7 billion). Capital expenditure (including finance lease principal repayments) of $31.08 billion, free cash flow of $784 million (-90.8% YoY), operating cash flow of $31.862 billion (+25% YoY). End-of-period headcount of 75,472 (-1% YoY), with approximately 8,000 affected by the May layoff plan. 【Family of Apps】FoA advertising revenue of $59.363 billion (+27% YoY, cc +26%); ad impressions +14% YoY, price per ad +12% YoY. ...