[CICC Global Research] Meta 2Q26 Results First Take: 2Q26 revenue slight beat, profit better than expected excluding one-time items; 3Q26 revenue guidance slightly below consensus

English summary

1. Revenue: 2Q26 total revenue grew 28.0% YoY to $60.8B, +27% YoY in constant currency, slightly beating market consensus by ~1%; advertising revenue grew 27% YoY to $59.4B, +26% YoY in constant currency, with ad impressions/prices +14%/+12% YoY, continuing volume and price growth. 2. Gross margin/operating margin: 2Q26 GPM at 81.9%, roughly in line with consensus; GAAP OPM at 30.9%, below consensus of 35.7%, mainly due to $2.4B legal litigation expenses and $1.18B severance costs. Excluding these one-time items, operating profit was ~$22.4B, corresponding to OPM ~36.8%, above consensus, with underlying operating profit +9% YoY. 3. Guidance: 1) 3Q26 revenue guidance of $61B-$64B, +19.0%-24.9% YoY, including ~1% FX headwind; ...