Meta Platforms’ second-quarter free cash flow fell 91% year on year to $784M as the company accelerated investment in artificial intelligence infrastructure, putting pressure on investors despite strong revenue growth.
Revenue rose 28% to $60.8B in the quarter ended June 30. However, Meta’s shares fell about 10% in extended trading after the results, as the company raised the lower end of its 2026 capital expenditure forecast to $130B from $125B. The new range is $130B to $145B, up from an initial forecast of $115B to $135B.
Meta said it has 32 data centers operating or under construction globally, including 28 in the United States. CEO Mark Zuckerberg said the company expects to use its computing capacity to train AI models, support its core business, develop personal agents and new products, and potentially serve large customers.
The company is also weighing whether to rent out some computing capacity. Zuckerberg said businesses have offered a meaningful premium for access, but selling compute could compete with Meta’s own AI ambitions. Analysts noted that, unlike major cloud providers, Meta remains heavily dependent on its advertising business to fund the buildout.
Meta also faces legal risks tied to allegations about youth safety on Facebook and Instagram. The company said four states are seeking $1.4 trillion in penalties.
Source: Zawya
