Meta lifts the floor on its AI spending as revenue jumps but cash flow collapses

Meta said second-quarter revenue rose 28% to $60.8 billion, its fastest growth since late 2021, while free cash flow fell 91% to $784 million. The company is accelerating AI spending, raising its 2026 capital-expenditure forecast floor by narrowing the expected range to $130 billion–$145 billion, up from a prior $125 billion start and roughly double a year earlier. Meta linked performance to advertising and AI-enhanced recommendations that improved engagement across Instagram and Facebook. However, earnings per share came in at $6.18, below analysts’ $7.22 estimate, partly due to $2.4 billion in legal charges tied to claims that products are designed to be addictive for young users. Meta reported 3.6 billion daily active people.