Meta expected to beat Q2 estimates as AI investments meet investor scrutiny

Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) is expected to station second-quarter results supra Wall Street expectations, with analysts pointing to steadfast advertizing request and aboriginal returns from artificial quality concern adjacent arsenic investors property the institution for clearer grounds its AI spending volition wage off.

Bank of America expects Meta to study gross of $60.6 cardinal and net per stock of $7.50, supra statement of $60.2 cardinal and $7.18, citing steadfast advertisement maturation and imaginable upside from May's workforce reductions. Investors are expected to absorption connected AI initiatives during the call, including advertizing improvements tied to AI exemplary integration, Muse Spark, and imaginable outer compute sales.

For the 3rd quarter, the slope expects Meta to usher gross to $60.5 cardinal to $63.5 billion, astir 18% to 24% maturation twelvemonth implicit year.

On costs, analysts said Meta could trim the apical extremity of its disbursal guidance by $1 cardinal to $2 cardinal pursuing the layoffs, portion perchance raising its superior expenditure outlook to $135 cardinal to $150 billion, up from $125 cardinal to $145 billion, connected higher representation costs.

Bank of America besides raised its 2027 gross estimation by $5 cardinal connected imaginable AI capableness benefits pursuing reports of a imaginable compute woody with Anthropic, present projecting $316 cardinal successful 2027 gross and $35.00 successful net per share.

The results get amid broader capitalist unease implicit AI spending crossed Big Tech. Wedbush Securities said investors are focused connected whether dense AI infrastructure concern volition construe into stronger gross growth, alternatively than questioning the semipermanent outlook.

"We are going done different 'gut check' fewer weeks up for the tech commercialized arsenic tech investors await a precise important Q2 net play successful July to further validate the AI Revolution buildout," Wedbush wrote, adding that Meta, Microsoft, Alphabet, Amazon, Nvidia, Oracle and Palantir person each travel nether unit arsenic investors question erstwhile elevated capex volition make returns. The steadfast called it an "air pouch stage," with astir $700 cardinal successful Big Tech capex this twelvemonth fueling the buildout up of broader endeavor adoption.

Bank of America separately noted Meta shares person fallen astir 24% since its third-quarter 2025 call, erstwhile the institution guided to a step-up successful 2026 spending, versus a 5% summation for the Nasdaq. The slope said Meta's compute request is structural, with AI already improving advertisement targeting, though the marketplace remains uncertain however rapidly newer bets similar subscriptions and concern agents volition monetize. Analysts expect much clarity implicit the adjacent 2 net cycles.

Meta reports second-quarter results aft markets adjacent tonight.