Meta profit falls 14% as AI spending weighs
Meta said Wednesday that net income fell 14% from a year earlier to $15.8 billion, as artificial intelligence spending, legal charges and severance costs weighed on the Facebook parent's latest results.
Revenue rose 28% to $60.8 billion, which Meta said reflected continued strength in its advertising business. Shares were down as much as 7% in after-hours trading.
Meta said the profit decline was driven largely by one-time items, including $2.4 billion in charges tied to legal proceedings and $1.2 billion in severance from a round of layoffs in May.
The company reaffirmed its large AI spending plans and said it expects capital expenditures of $130 billion to $145 billion this year, nearly double what it spent in 2025.
“AI is accelerating our core business today, powering our next generation of products, and opening the door to entirely new enterprise opportunities,” chief executive Mark Zuckerberg said.
Meta's virtual reality division, Reality Labs, posted a $4.6 billion operating loss in the quarter. The company has increasingly shifted its hardware focus toward AI-powered smart glasses.
Free cash flow fell to $784 million from $8.5 billion a year earlier, as Meta continued to spend on data centres and chips for its AI effort.
Update
Meta shares were down as much as 7% in after-hours trading.
Meta said one-time items included $2.4 billion in charges tied to legal proceedings and $1.2 billion in severance from May layoffs.
Meta expects capital expenditures of $130 billion to $145 billion this year, nearly double what it spent in 2025.
Mark Zuckerberg said AI is accelerating Meta's core business and opening new enterprise opportunities.
Reality Labs posted a $4.6 billion operating loss in the quarter.
Meta's free cash flow fell to $784 million from $8.5 billion a year earlier.
Source note: AFP news report published on 29 July 2026 at 20:58:21 UTC.
Update
Meta said net income dropped 14% from a year earlier to $15.8 billion.
Meta said revenue climbed 28% to $60.8 billion.
The item says AI spending, legal charges and severance charges hurt Meta's bottom line.
Source note: AFP news report published on 29 July 2026 at 20:33:41 UTC.
Uncertainty notes
The source attributes after-hours share movement to analyst skepticism over AI spending, but the precise reasons for trading moves are not independently established.
Source
AFP news report published on .