Full Breakdown
Meta Eyes Q2 Earnings as AI Investments Drive Capex Debate
7/29/2026, 7:46:20 PM
Core Event: Upcoming Q2 Earnings and AI Strategy
Meta Platforms is slated to release its second-quarter 2026 results after the close of regular trading on Wednesday. Analysts surveyed by LSEG expect adjusted earnings per share of $7.22 and revenue of $60.17 billion, representing a 26 % increase from the $47.52 billion reported in the same quarter a year earlier. The earnings call will focus on how the company’s expanding artificial-intelligence (AI) initiatives are being monetized.
Background & Context: AI Push and Data-Center Expansion
Meta’s AI efforts intensified after hiring AI chief Alexandr Wang in June 2025, a move that included a $14.3 billion investment in Scale AI, Wang’s startup.
To support these models, Meta announced several large-scale data-center projects: a $14 billion facility in El Paso, Texas (partnered with BlackRock), a Hyperion project in rural Louisiana projected to exceed $50 billion, and a $9 billion data center in Alberta, Canada. Unlike the other three leading hyperscalers—Alphabet, Amazon and Microsoft—Meta does not operate a public cloud business, prompting speculation that the company may begin selling AI-compute capacity to third parties. CNBC reported that Anthropic is in preliminary talks to lease such capacity from Meta.
Data & Statistics: Financial Forecasts and Capital Expenditure
Meta’s capital-expenditure (capex) outlook has risen sharply. In its April earnings release, the company lifted its annual capex forecast to $145 billion from $135 billion. StreetAccount projects Q2 capex at $33.9 billion and a full-year total of $136.7 billion. By contrast, Alphabet recently raised its 2026 capex guidance to as much as $205 billion from a prior range up to $190 billion.
Meta’s daily active people (DAP) metric is expected to reach 3.61 billion for the quarter, with an average revenue per person of $16.65. The Reality Labs unit, which develops virtual-reality, augmented-reality and AI-powered wearables, is forecast to post a $5.07 billion loss on revenue of $423.4 million.
What’s Next: Earnings Call and Potential AI Capacity Leasing
The earnings release will be followed by a conference call in which CEO Mark Zuckerberg is expected to address the company’s AI monetization strategy and the progress of its data-center projects. In parallel, discussions with Anthropic about leasing AI-compute capacity could signal a new revenue stream if agreements are finalized.
Meta’s performance this quarter will provide investors with a clearer view of whether its AI-focused capex is translating into diversified earnings, a question that remains central to the company’s valuation outlook.
