This report does not constitute a rating action. What's new: Meta Platforms? results for the second quarter of 2026 demonstrated the strength of its core business. Overall revenue grew 28%, led by 27.5% growth in advertising, with double-digit percent growth in both advertising impressions and average price. However, costs grew faster than revenue, due in part to $2.4 billion in legal accruals and a $1.2 billion severance charge, up 55%, resulting in a 1,200-basis-point decline in reported operating margins. Free cash flow was an anemic $784 million (versus historic levels that exceeded $10 billion) as capital expenditure (capex), which includes principal payments on finance leases, stepped up to $31.1 billion. Key takeaways include: Meta updated full-year capex guidance for 2026
