Meta Earnings Put AI Spending and Ad Growth Back in Focus

Summary

Meta Platforms Today$595.19 0.00 (0.00%) As of 07/24/2026 04:00 PM Eastern52-Week Range$520.26▼$796.25Dividend Yield0.35%P/E Ratio21.64Price Target$835.64Meta Platform’s NASDAQ: META Q2 2026 financial results are quickly approaching, with the company set to release earnings on July 29 after the market close. Despite being down more than 8% year to date, the Magnificent Seven giant has recently seen its share price surge. The stock has rebounded around 10% from its 2026 low and now trades near $600. This recovery is largely attributable to excitement around Meta’s reported cloud computing push and its Muse Spark 1.1 AI model. However, at this point, these potential growth drivers represent just that: potential. The company is reportedly in “very preliminary talks” to enter a $10 billion cloud computing deal with Anthropic, while it released Muse Spark 1.1 only around two weeks ago. In turn, these factors are unlikely to impact Meta’s results in Q2.Get Meta Platforms alerts:Sign Up The focus for Q2 will continue to be on Meta’s massive advertising business. These are the key headline figures and underlying metrics to watch, along with the commentary that could be important during the call. Forecasts Point to Growth Deceleration; Spending Guidance Is KeyIn Q1, Meta put up impressive metrics, particularly when it comes to growth. Revenue rose by 33% year-over-year (YOY), the company’s fastest growth rate since 2021. Meta also blew past expectations on adjusted earnings per share (EPS), although an unusual tax benefit caused the majority of its $3.77 beat. In Q2, analysts expect the company to generate sales of $60.21 billion, or a growth rate of just under 27% YOY. Notably, this sales expectation is on the high end of Meta’s $58 billion to $61 billion Q2 guidance. Adjusted EPS expectations sit at $7.20, or growth of only around 1% YOY. Analysts currently forecast sales of $63.2 billion for Q3, and markets will look for Meta to provide midpoint guidance above this figure...