Meta reported soaring second-quarter 2026 revenue but took a significant hit from legal charges and layoff-related costs, highlighting the tension between its booming core business and mounting regulatory pressures. The company, which owns Facebook and Instagram, said the results were dented by a $2.4 billion charge tied to unspecified legal proceedings, with CFO Susan Li warning that ongoing scrutiny of youth-related issues could lead to a "material loss" from several US trials scheduled this year.

Meta posted revenue of $60.8 billion for the quarter, up 28% year-on-year, though net income fell 14% to $15.85 billion, with earnings per share of $6.18, missing Wall Street's forecast because of the legal and severance charges. It also booked $1.18 billion in severance costs from May's layoff of roughly 8,000 staff as part of its pivot towards artificial intelligence. Looking ahead, Meta forecast Q3 revenue of $61-64 billion and narrowed its 2026 capital spending guidance to $130-145 billion, up sharply from $72.2 billion in 2025, as it ramps up AI infrastructure investment — including a newly announced $10 billion data centre venture with BlackRock in El Paso, Texas.