It is a busy week for Big Tech earnings. Microsoft (MSFT) and Meta Platforms (META) will report results on Wednesday, July 29, while Apple (AAPL) and Amazon (AMZN) will follow a day later.
That puts Meta in focus as it prepares to release its second-quarter 2026 results after the market closes. The company will hold its earnings call at 1:30 p.m. PST, or 4:30 p.m. EST. What makes this report especially important is the tension building around Meta’s spending and growth story.
More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.
Meta boosted its projected 2026 capital expenditures (CapEx) earlier this year, increasing the range between $125 billion and $145 billion, versus its prior $115 billion to $135 billion outlook. They are putting more money into its AI plans, data centers, and computing capacity.
So the key question for Meta investors is not whether the company is expanding. It is whether that expansion is strong enough to justify the rising bill.
Will July 29 confirm that Meta’s AI ambitions are building the next leg of earnings power? Or will it remind the market that big bets can come with an equally high price?
Meta’s Core Business Faces Earnings Test
Based in Menlo Park, California, Meta builds the social media and digital advertising services behind Facebook, Instagram, WhatsApp, and Meta AI. The company connects billions of users worldwide while also developing products tied to communication, entertainment, commerce, and artificial intelligence.
META stock is down 9.8% this year and 17% over the past 52 weeks.
www.barchart.comThe company has a premium valuation, with its forward price-to-earnings ratio of 20.55 times sitting above the sector median of 15.86 times. Meanwhile, its PEG ratio of 0.85 times is below the sector median of 1.13 times.
Its market value stood at $1.51 trillion, with an annual dividend of $2.10 a share, or 0.35%.
Its Q1 report on March 26 delivered $7.31 in earnings per share, beating the $6.71 estimate by 8.94%. This came on revenue of $56.31 billion, which was down 5.98% year-over-year (YOY), while net income rose 17.59% to $26.77 billion.
It also posted operating cash flow of $32.23 billion for March 2026, though that marked a 72.17% decline. The company reported net cash flow of -$8.0 billion, a 26.19% change, showing heavy investment pressures.
That growth still showed up in the Family of Apps business, which generated $55 billion in Q1 revenue, up 33% YOY. This came from stronger engagement, improved monetization, and a 19% increase in ad impressions across Meta’s platforms.
Meta expects Q2 revenue of $58 billion to $61 billion, with the midpoint implying more than 25% YOY growth. Their next earnings release is tomorrow, July 29, and the average EPS estimate is $7.13 versus $7.14 a year earlier.
Meta’s AI Buildout Moves Toward Monetization
Meta’s AI infrastructure thesis gained fresh support through preliminary negotiations with Anthropic. The AI developer could lease Meta’s data center computing capacity under a deal valued at up to $10 billion over two years. The arrangement could turn idle hardware into a major revenue stream while helping Anthropic access scarce AI computing resources.
That opportunity sits beside a massive physical expansion. Meta plans to spend more than $50 billion on its Hyperion data center in Richland Parish, Louisiana.
Hyperion is now expected to provide 5 gigawatts of capacity, up from the previous 2-gigawatt expectation. Meta expects the project to create 1,000 operational jobs after completion.
Meta is also strengthening control of its AI supply chain. The company plans to begin production of its custom “Iris” AI chip in September.
Broadcom (AVGO) will design the chip, while Taiwan Semiconductor (TSM) will manufacture it. The effort supports Meta’s reported goal of doubling computing capacity from 7 gigawatts this year to 14 gigawatts next year.
Meta is pairing this with new efforts to monetize AI directly. It recently unveiled paid Meta AI subscriptions across Facebook, Instagram, and WhatsApp.
The basic Meta AI plan is priced at $7.99 per month, with the Premium tier costing $19.99 per month. These plans provide higher AI usage limits, advanced image and video generation, and premium engagement features.
The July 29 earnings report should show whether Meta’s spending is starting to bring in meaningful returns.
Analysts Remain Bullish Before Earnings
Cathie Wood has made a fresh bullish call on Meta ahead of its July 29 earnings report. ARK Invest purchased 28,106 META shares worth about $18.16 million, or roughly $18 million, during the stock’s recent dip. Wood’s move places greater attention on Meta’s ability to convert AI investments into incremental growth.
Meta is adding cloud expertise to support its longer-term plans. Dave Brown, an AWS veteran with 19 years at Amazon, is joining Meta after leaving his role in July.
Wedbush welcomed the move. Analyst Matt Bryson said the hire shows Meta is serious about building a cloud service, even if Brown first focuses on internal infrastructure.
Wall Street’s broader stance remains favorable. The consensus rating from 54 surveyed analysts is “Strong Buy.” Their average price target of $824.29 represents 38.6% upside.
www.barchart.com
www.barchart.comConclusion
Meta heads into July 29 with its core advertising business still growing, while AI spending is rising at an extraordinary pace. The report should clarify whether that spending is improving engagement, opening new revenue channels, and supporting future profit growth. If Meta delivers another ad revenue beat and keeps its spending outlook steady, its shares are likely to move higher. However, a larger capital expenditure forecast or weaker margin guidance could pressure the stock.
On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
This Analyst Thinks Shopify Stock Is a Screaming Buy. Here’s Why He May Be Right. Dear Meta Platforms Stock Fans, Mark Your Calendars for July 29 Why McDonald’s (MCD) Stock Options May Be Offering Value-Meal Pricing Wall Street’s SpaceX Sale: Buy the Rockets, Get an AI Business for Free!