Meta Spends Majority of Operating Cash Flow on AI Infrastructure Build-Out
Meta Platforms reported second-quarter results showing strong revenue growth but significant capital expenditures. The social media giant generated $31.9 billion in operating cash flow, yet only retained $784 million as free cash flow due to heavy spending on artificial intelligence infrastructure and data centers. Capital expenditures reached $31.1 billion for the quarter — a sharp increase from Q1's $19.8 billion — driven by rising component costs and new capacity needs. Meta now expects 2026 capital expenditures of $130–$145 billion, up from previous guidance. Despite robust ad revenue growth with both volume and pricing increases, net income fell year-over-year as expenses rose to support AI expansion. The company's free cash flow dropped dramatically compared to the prior quarter and last year.
Tickers: $META
Topics: AI infrastructure capital expenditures free cash flow Meta