Meta Expected to Post Higher 2Q Sales With AI Spending Plans in Focus -- Earnings Preview

By Kelly Cloonan

Meta Platforms is scheduled to report its second-quarter results on Wednesday after market close. Here is what you need to know.

NET INCOME: The social media company is expected to post a profit of $18.58 billion, or $7.19 a share, compared with $18.34 billion, or $7.14 a share, the year before, according to FactSet.

REVENUE: The company is expected to report $60.22 billion in sales, compared with $47.52 billion in the year-ago quarter, according to FactSet.

The stock has fallen 11% in the past three months and recently traded around $595.64.

WHAT TO WATCH:

--All eyes are on Meta's spending as the company piles on debt to fund its artificial-intelligence infrastructure buildout. Meta looks poised to continue its borrowing binge, given its been aggressively locking up future data-center capacity and has issued several requests for proposals on additional projects related to real estate, energy and other AI infrastructure, The Wall Street Journal reported.

--Analysts say Meta's results will need to show proof that its heavy spending will pay off, and provide further details around the strategy. The report "needs to put real numbers behind an AI infrastructure strategy where aspiration and reality are increasingly diverging, particularly on compute capacity," Benchmark analysts said.

--Additionally, analysts will be keeping an eye on the strength of Meta's ad business, which makes up most of its topline. The company has been using AI to show users posts and videos that lead them to watch and click on ads more frequently, helping sales. "AI driven ad improvements have been a clear lever for Meta and are already driving clear benefits," Wedbush analysts said. Meta's ad business looks strong, driven by those product improvements as well as a solid backdrop in the ad industry, they said.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

July 28, 2026 14:06 ET (18:06 GMT)