Meta continues to post soaring revenue, but the Mark Zuckerberg-led company took a big hit in the second quarter of 2026 related to legal proceedings and layoffs.
The company, the parent of Facebook and Instagram, said it took $2.4 billion in charges “related to legal proceedings” in Q2; it didn’t immediately disclose what legal proceedings those referred to. In addition, Meta’s bottom line was dinged by $1.18 billion in severance expenses in connection with the May 2026 layoff of about 8,000 employees amid its companywide shift to prioritize AI.
For the second quarter of 2026, Meta posted revenue of $60.8 billion, up 28%, and net income of $15.85 billion, an decrease of 14% (translating to earnings per share of $6.18). The company beat on the top line but missed Wall Street’s earnings forecast.
Meta expects Q3 2026 total revenue to be in the range of $61 billion-$64 billion (with analysts forecasting $63.24 billion for the period).
In releasing results, Meta provided commentary from CFO Susan Li, who said certain “active legal and regulatory matters” could “significantly impact our business and financial results.” For example, according to Li, “we continue to see scrutiny on youth-related issues in several markets and have a number of youth-related trials scheduled for this year in the U.S., which may ultimately result in a material loss.”
