Meta Shares Tumble as AI Spending Crushes Cash Flow and Weak Outlook Overshadows Revenue Beat - Tekedia

Meta topped Q2 revenue estimates but missed EPS and issued softer Q3 guidance, sending shares down nearly 10% after hours.

Free cash flow fell sharply as AI-driven capital spending surged, and Meta raised the low end of its 2026 capex outlook.

User growth is slowing, while Zuckerberg said Meta could eventually sell compute to customers.

The results underscore how Meta’s AI push is pressuring near-term profits and cash generation.