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Meta Platforms Inc earns most of its revenue from advertisers reaching people through social and messaging apps such as Facebook and Instagram. Family of Apps contains this advertising business. Reality Labs develops virtual and augmented reality products. People provide the audience; advertisers are the main paying customers. Meta says artificial intelligence supports recommendations and advertiser tools. Their economic value depends on advertising benefits exceeding the cost of delivering them.
In the second quarter of 2026 versus the second quarter of 2025, revenue rose 28%, costs and expenses rose 55%, and fell 8%. Demand is working, but the enlarged cost base is taking more of the benefit.
Meta attributed the operating-income decline in the second quarter of 2026 to compensation, infrastructure, legal-related and third-party AI costs. The result does not establish that AI alone caused the pressure. Distinguishing recurring spending from specific charges matters when assessing whether profitability can improve.
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