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

Meta expected to beat Q2 estimates as AI investments meet investor scrutiny Proactive Wed, July 29, 2026 at 5:57 PM GMT+2 2 min read META FB2A FB Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) is expected to post second-quarter results above Wall Street expectations, with analysts pointing to healthy advertising demand and early returns from artificial intelligence investment even as investors press the company for clearer evidence its AI spending will pay off. Bank of America expects Meta to report revenue of $60. 6 billion and earnings per share of $7.

50, above consensus of $60. 2 billion and $7. 18, citing healthy ad growth and potential upside from May's workforce reductions.

Investors are expected to focus on AI initiatives during the call, including advertising improvements tied to AI model integration, Muse Spark, and potential external compute sales. For the third quarter, the bank expects Meta to guide revenue to $60. 5 billion to $63.

5 billion, roughly 18% to 24% growth year over year. On costs, analysts said Meta could trim the top end of its expense guidance by $1 billion to $2 billion following the layoffs, while potentially raising its capital expenditure outlook to $135 billion to $150 billion, up from $125 billion to $145 billion, on higher memory costs. Bank of America also raised its 2027 revenue estimate by $5 billion on potential AI capacity benefits following reports of a possible compute deal with Anthropic, now projecting $316 billion in 2027 revenue and $35 in earnings per share.

The results arrive amid broader investor unease over AI spending across Big Tech. Wedbush Securities said investors are focused on whether heavy AI infrastructure investment will translate into stronger revenue growth, rather than questioning the long-term outlook. "We are going through another 'gut check' few weeks ahead for the tech trade as tech investors await a very important Q2 earnings season in July to further validate the AI Revolution buildout," Wedbush wrote, adding that Meta, Microsoft, Alphabet, Amazon, Nvidia, Oracle and Palantir have all come under pressure as investors question when elevated capex will generate returns.

The firm called it an "air pocket stage," with roughly $700 billion in Big Tech capex this year fueling the buildout ahead of broader enterprise adoption. Bank of America separately noted Meta shares have fallen roughly 24% since its third-quarter 2025 call, when the company guided to a step-up in 2026 spending, versus a 5% gain for the Nasdaq. The bank said Meta's compute demand is structural, with AI already improving ad targeting, though the market remains uncertain how quickly newer bets like subscriptions and business agents will monetize.

Analysts expect more clarity over the next two earnings cycles. Meta reports second-quarter results after markets close tonight.