Meta Platforms generated more than $60.8 billion in quarterly revenue but ended the period with less than $1 billion in free cash flow after pouring almost all of its operating cash into artificial intelligence infrastructure, underscoring how aggressively the Facebook parent is reshaping its finances around AI.
- Meta Platforms redirects nearly all operating cash into AI infrastructure, causing a record-breaking 91 percent collapse in quarterly free cash flow.
- Mark Zuckerberg raises 2026 capital expenditure guidance to 145 billion dollars as quarterly infrastructure spending reaches a record 31.08 billion.
- BlackRock partners with Meta on a 14 billion dollar Texas campus as the firm prioritizes internal compute over shareholder buybacks.
Revenue rose 28% to $60.8 billion in the second quarter, while operating cash flow increased to $31.86 billion, according to Meta’s quarterly results. Capital expenditure climbed to $31.08 billion, leaving $784 million in free cash flow, down 91% from $8.55 billion a year earlier.
The results illustrate a shift in Meta’s financial profile. The company continues to generate strong advertising growth, but an unprecedented share of that cash is now being redirected into data centres, AI chips and computing infrastructure as Chief Executive Mark Zuckerberg, the company’s founder and CEO, accelerates what could become one of the largest AI investment programmes in corporate history.
AI Infrastructure Consumed Almost All Operating Cash
Meta spent roughly 97.5 cents of every dollar generated from operating activities on capital expenditure during the quarter.
Operating cash flow increased by about $6.3 billion from a year earlier. Capital expenditure rose by approximately $14.1 billion, meaning infrastructure spending increased by more than twice the additional cash generated by the business.
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→ Submit a Press ReleaseThe company narrowed its full-year capital expenditure forecast to between $130 billion and $145 billion, while raising the lower end of its guidance, reflecting continued investment in AI infrastructure.
Meta said the spending would support expanding AI capacity, including data centres, networking equipment and next-generation computing systems.
Advertising Business Continued to Grow
The heavy investment came as Meta’s core advertising business continued to expand.
The company reported a 14% increase in ad impressions and a 12% rise in average advertising prices, helping lift revenue despite higher infrastructure costs.
Operating income fell 8% to $20.44 billion, although results included approximately $2.4 billion in legal-related expenses and $1.18 billion in employee severance costs.
Excluding those items, the underlying business remained profitable while generating substantial operating cash.
Capital Returns Took a Back Seat
The financial statements also showed how Meta prioritised infrastructure spending over returning cash to shareholders.
Share repurchases were zero during the quarter.
Cash, cash equivalents and marketable securities totalled $90.26 billion at quarter-end, while long-term debt stood at $83.66 billion.
The company raised approximately $24.91 billion through debt financing during the period as it continued funding its long-term AI expansion.
Multi-Year Commitments Continue to Grow
Meta has also committed to substantial future infrastructure spending beyond quarterly capital expenditure.
Earlier this year, the company disclosed $182.9 billion in lease commitments not yet commenced and $237.7 billion in non-cancellable contractual obligations tied largely to AI infrastructure.
In April, Meta also announced a partnership with BlackRock, the world’s largest asset manager, to develop a $14 billion AI data centre campus in El Paso, Texas. Under the arrangement, funds managed by BlackRock will own most of the project while Meta leases the facility under a long-term agreement.
The structure allows Meta to expand computing capacity without directly owning every facility, while still securing long-term access to the infrastructure required for AI development.
AI Investment Now Defines Meta’s Financial Strategy
Executives said demand for AI computing remains strong both inside and outside the company.
During the earnings call, Zuckerberg said external parties had offered to pay significant premiums for Meta’s computing capacity, but the company chose to retain those resources for its own AI products and services instead.
The decision highlights how Meta increasingly views computing infrastructure as a strategic asset supporting future revenue rather than a resource available for commercial leasing.
For investors, the second quarter showed a company whose advertising engine continues to generate billions of dollars in cash, while almost all of those proceeds are now being redirected into Meta – Meta Reports Second Quarter 2026 Results.
The immediate effect was a sharp decline in free cash flow. Meta’s long-term objective is that the investment will support future products, AI assistants, business tools and advertising systems across its platforms, though the financial returns from that spending remain several years away.
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