Meta Shares Tumble to $540 Range as Earnings Miss Sparks Selloff
Meta's stock traded around $540 (down roughly 8% in the immediate after-hours action due to the EPS miss and capex concerns.
Meta’s stock traded around $540 (down roughly 8% in the immediate after-hours action due to the EPS miss and capex concerns. Meta expects Q3 2026 revenue between $61.0 billion and $64.0 billion. The midpoint ($62.5 billion) sits slightly below Wall Street’s prior consensus of $63.2 billion.
The report presented a mix of robust advertising growth alongside pressure from rising capital expenditures, legal charges, and restructuring expenses.
Revenue: $60.8 billion (up ~28% year-over-year), slightly beating Wall Street consensus estimates of $60.2 billion–$60.3 billion. Earnings Per Share (EPS): $6.18, falling short of analyst expectations (~$7.18 to $7.22). Ad impressions rose 14% year-over-year, and the average price per advertisement grew 12%.
Total costs and expenses climbed to $42.03 billion. This included $2.4 billion in legal charges and $1.18 billion in severance costs tied to workforce reductions.
Capital expenditures (Capex) remain elevated as Meta builds out AI infrastructure. Full-year 2026 capex guidance is anchored between $130 billion and $145 billion, while free cash flow dropped significantly to $784 million for the quarter.
Meta expects Q3 2026 revenue between $61.0 billion and $64.0 billion. The midpoint ($62.5 billion) sits slightly below Wall Street’s prior consensus of $63.2 billion.
Wall Street analysts maintain an overall Strong Buy / Outperform consensus rating despite short-term margin compression, viewing the post-earnings pullback as an entry point backed by long-term AI monetization potential
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