Meta Platforms' Q2 EPS Missed Expectations by 14%, Free Cash Flow Plunged 91%, and Capital Expenditures Surged 82% to $30.12 Billion
Meta Platforms reported its second-quarter earnings, with earnings per share (EPS) of $6.18—14% below the market consensus estimate of $7.22—ending a streak of six consecutive quarters of outperforming expectations. The financial report showed that the company’s free cash flow plummeted 91.31% year-over-year to $784 million, while capital expenditures surged 82.1% to $30.12 billion in the second quarter. Additionally, the operating margin contracted from 43% to 31%, and net income declined by 13.57%. The company’s revenue rose 27.96% year-over-year to $60.8 billion, with advertising revenue growing 27% to $59.36 billion. Meta narrowed its full-year capital expenditure guidance to $130–145 billion and raised its full-year expense guidance to $165–169 billion. Following the earnings release, Meta’s stock price has fallen 6.63% over the past week and is down 11.13% year-to-date.
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