META · Meta Platforms, Inc.
10-Q filed 2026-07-30 period 2026-06-30
74 Stable
confidence high · source filing on SEC.gov ↗
- Massive capital expenditures of $31.08 billion in Q2 2026 (and $49.11 billion for the first six months) driven by aggressive investments in AI servers, data centers, and network infrastructure.
- A significant $2.40 billion legal charge recorded in Q2 2026, which drove a 111% increase in General and Administrative expenses.
- Ongoing regulatory headwinds in Europe, including an April 2025 European Commission final decision against Meta's 'subscription for no ads' model, which is currently being appealed.
vs. prior filing (10-Q filed 2026-04-30) — ⚠ ALERT
FHS 85 → 74 (-11) · Strong -> Stable
Profitability -15Balance sheet -7Cash generation -15Risk flags -10Mgmt signal -5
Filing Health Score pillars
Profitability 25%
75
Revenue grew 28% YoY to $60.80 billion in Q2 2026, but operating margin declined from 43% to 31% due to a 55% increase in total costs and expenses, particularly in R&D and G&A (MD&A - Executive Overview / Results of Operations).
Balance sheet 20%
85
Cash and marketable securities of $90.26 billion exceed long-term debt of $83.66 billion, and the current ratio is strong at 2.23, though debt increased from $58.74 billion at year-end 2025 (Balance Sheets / MD&A).
Cash generation 20%
70
Operating cash flow was robust at $64.09 billion for the first six months of 2026, but free cash flow was constrained by massive capital expenditures of $49.11 billion (42% of revenue) driven by AI infrastructure investments (Statements of Cash Flows / MD&A).
Risk flags 20%
65
Risk factors highlight ongoing regulatory challenges in Europe, including a final non-compliance decision by the European Commission in April 2025, and the company recorded a substantial $2.40 billion legal charge in Q2 2026 (Risk Factors / MD&A - General and Administrative).
Mgmt signal 15%
75
Management is aggressively prioritizing AI infrastructure and optimization, executing an 8,000-employee headcount reduction in May 2026, while Reality Labs continues to run large operating losses of $4.62 billion (MD&A - Executive Overview / Investment Philosophy).
Key metrics (Three and Six Months Ended June 30, 2026)
period: Three and Six Months Ended June 30, 2026
total debt: $83,664 million (As of June 30, 2026)
cash and equivalents: $15,462 million (As of June 30, 2026)
shares outstanding: 2,206 million Class A shares and 342 million Class B shares (As of June 30, 2026)
revenue: $60,801 million (Three Months Ended June 30, 2026)
net income: $15,848 million (Three Months Ended June 30, 2026)
operating cash flow: $64,088 million (Six Months Ended June 30, 2026)
Gemma triage notes (pre-analysis, second opinion)
None for this filing.Automated research summaries derived from SEC filings. Not investment advice.