Meta Platforms reports second-quarter earnings after the market closes on July 29. Investor focus has shifted to the company's massive capital expenditure for artificial intelligence. Full-year 2026 guidance projects spending between $125 billion and $145 billion. This scrutiny follows market volatility caused by Alphabet's recent AI spending disclosures.
Analysts expect Meta to report quarterly revenue of approximately $60.2 billion. The core advertising business remains the primary driver of this growth. However, investors are prioritizing capital efficiency and free cash flow over top-line results. Markets are questioning if the returns on AI investments will justify the immense costs.
The company may discuss a potential cloud computing business or a partnership with AI firm Anthropic. These initiatives could signal a new strategy to monetize infrastructure spending. Such moves aim to ease concerns regarding the company's long-term profitability.