Meta continues to post soaring revenue, but the Mark Zuckerberg-led company took a big hit in the second quarter of 2026 related to legal proceedings.

The company, the parent of Facebook and Instagram, said it took “$2.4 billion charges related to legal proceedings” in Q2. Meta’s bottom line also was dinged by $1.18 billion in severance expenses in connection with the May 2026 layoff of about 8,000 employees amid its companywide shift to prioritize AI.

For the second quarter of 2026, Meta posted revenue of $60.8 billion, up 28%, and net income of $15.85 billion, an decrease of 14% (translating to earnings per share of $6.18). The company beat on the top line but missed Wall Street’s earnings forecast.

Meta expects 2026 capital spending to be $130 billion-$145 billion (vs. $72.2 billion in 2025), with the increased investment largely supporting the internet company’s AI buildout. Other big tech companies, including Alphabet and Amazon, have also dramatically upped capex targets because of AI. On Tuesday, Meta announced it was investing over $10 billion in a strategic venture with BlackRock to develop and build a data center campus in El Paso, Texas.

“AI is accelerating our core business today, powering our next generation of products, and opening the door to entirely new enterprise opportunities,” Zuckerberg, Meta’s chairman, CEO and co-founder, said in prepared remarks announcing Q2 earnings. “The results are already showing, and I’m optimistic about the potential ahead.”

Zuckerberg has outlined an optimistic vision for AI superintelligence. In a Wall Street Journal op-ed published Tuesday, he argued that if powerful AI tools are widely distributed, society overall will benefit and there will be more jobs — not fewer. “Meta is committed to building [AI] with the principles of individual empowerment, invention and balance of power,” he wrote. The exec criticized the notion of “centralizing” AI power among a “handful of institutions,” saying he believes “delivering personal superintelligence to everyone” is the right way forward.

Meta’s recent AI initiatives have included the new Muse Image model. But just days after launching the feature, the company suspended Muse Image’s feature that had let users generate images using public Instagram accounts, coming after widespread criticism over its opt-out policy including from Hollywood talent agencies.

Analysts on average expected Meta to report Q2 revenue of $60.17 billion and earnings of $7.22 per share, according to LSEG Data & Analytics.