According to a report published by CMB International, Meta announced results for the second quarter of 2026. Total revenue increased 28% year on year to 60.8 billion US dollars, which is roughly in line with market expectations; operating profit fell 8% year on year to 18.8 billion US dollars. If legal fees of 2.4 billion US dollars are excluded, it increased 4% year over year to 21.2 billion US dollars, and the market forecast is 21.5 billion US dollars. Looking ahead to the third quarter, management indicated that total revenue increased 19% to 25% year over year to $61 billion to US$64 billion, which is also in line with market expectations of US$63.1 billion. Since there are huge AI opportunities on both the consumer side and the enterprise side, the company is still committed to maximizing AI computing power capacity in the 2026/2027 fiscal year, which may put pressure on short-term profits and cash flow. The bank expects new AI opportunities to gradually contribute to profits and raise its operating profit forecast for the 2027-2028 fiscal year by 0% to 4%; considering the uncertainty of short-term profit and cash flow, the target price was lowered from $880 to $830 to maintain the “buy” rating. Subsequent key catalysts include basic model upgrades and accelerated corporate AI monetization.

According to a report published by CMB International, Meta announced results for the second quarter of 2026. Total revenue increased 28% year on year to 60.8 billion US dollars, which is roughly in line with market expectations; operating profit fell 8% year on year to 18.8 billion US dollars. If legal fees of 2.4 billion US dollars are excluded, it increased 4% year over year to 21.2 billion US dollars, and the market forecast is 21.5 billion US dollars. Looking ahead to the third quarter, management indicated that total revenue increased 19% to 25% year over year to $61 billion to US$64 billion, which is also in line with market expectations of US$63.1 billion. Since there are huge AI opportunities on both the consumer side and the enterprise side, the company is still committed to maximizing AI computing power capacity in the 2026/2027 fiscal year, which may put pressure on short-term profits and cash flow. The bank expects new AI opportunities to gradually contribute to profits and raise its operating profit forecast for the 2027-2028 fiscal year by 0% to 4%; considering the uncertainty of short-term profit and cash flow, the target price was lowered from $880 to $830 to maintain the “buy” rating. Subsequent key catalysts include basic model upgrades and accelerated corporate AI monetization.