META · Q2 FY2026
Meta Platforms, Inc. Q2 FY2026 earnings analysis
By SageNoodle ResearchBearish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $60.80B | $47.52B (yr ago) | Beat |
| EPS | $6.18 | $7.14 (yr ago) | Miss |
| Free Cash Flow | $1.75B (mechanical) | $9.02B (yr ago; mechanical) | Miss |
| Gross Margin | Not meaningful | Not meaningful (yr ago) | Miss |
| Operating Margin | 30.9% pre-tax margin | 43.0% (yr ago; pre-tax margin) | Miss |
What changed
Revenue increased 28.0% year over year to $60.80B, but EPS declined 13.4% and pre-tax margin contracted 12.1 percentage points to 30.9%. Mechanical free cash flow fell 80.6% to $1.75B as capital expenditure absorbed most operating cash generation.
Impact on the investment thesis
There was no prior SageNoodle fair value to change; we initiate fair value at $663.50 per share. The quarter supports a balanced view because stronger revenue was offset by weaker earnings conversion, lower margins and heavier capital requirements.