Meta Targets Enterprise AI as Advertising Provides 97.6% of Revenue
Meta launched its enterprise AI business with products including Muse agents, Muse API and Muse Code as capital spending rose and free cash flow fell.
Meta launched the Meta Enterprise Platform on Sept. 28 as a new business line focused on providing artificial-intelligence tools to companies, adding an enterprise push while advertising remains its dominant source of revenue.
The platform’s initial products are Muse agents, Meta Business Agent, Muse API and Muse Code. Meta named former MongoDB CEO CJ Desai to lead the business, reporting directly to CEO Mark Zuckerberg.
Advertising generated $59.363 billion of Meta’s $60.801 billion in revenue during the second quarter of 2026, equal to 97.6%. Advertising accounted for 97.7% of revenue during the first half of 2026.
Meta’s quarterly revenue increased 28% from a year earlier, while advertising revenue rose 27%. Ad impressions increased 14% and the average price per ad rose 12%.
Meta’s capital spending has increased as it builds out AI infrastructure. The company’s 2026 capital-expenditure guidance is $130 billion to $145 billion, including investments in servers and data centers.
Total costs and expenses rose 55% to $42 billion. Operating margin fell from 43% to 30.9%, net income declined 14% and free cash flow fell 91% to $784 million during the quarter.
Meta reported no share repurchases during the first half of 2026, compared with $23.159 billion during the same period a year earlier. The company issued $25 billion in senior unsecured notes in May.
The enterprise strategy builds on Meta’s existing business tools. Meta Business Agent can respond to customer inquiries, recommend products and schedule appointments across three messaging platforms. The tool is included in Meta One subscription plans, while large customers using the WhatsApp Business Platform are charged based on usage.
Meta previously extended Muse into workplace software for smaller companies in its Muse expansion into small-business workplace tools. Facebook has 200 million small businesses on the platform.
Meta will compete with Microsoft, Google, Amazon, OpenAI and Anthropic in enterprise AI and cloud services. The company has not disclosed pricing for Meta Enterprise Platform or identified its first customers. It also has not said whether the business will receive a separate line in future financial reports.
