# Meta Posts 28% Revenue Growth as Second-Quarter Expenses Rise 55%

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/27105
Published: 2026-10-06T17:33:12.000Z
Updated: 2026-10-06T17:33:12.000Z
Section: Business

> Operating income fell 8% and diluted earnings per share declined 13% in the quarter ended June 30, 2026.

Wells Fargo analyst Ken Gawrelski raised his price target on Meta Platforms to $1,000 from $796 on Oct. 6, while maintaining an Overweight rating and projecting higher operating expenses and lower capacity-resale revenue in 2027.

Gawrelski’s forecast puts Meta’s 2027 operating expenses at $210 billion to $215 billion, above consensus of about $202 billion. It also excludes 500 megawatts of capacity resales, representing roughly $5 billion in high-margin revenue. The estimates are an analyst view, not company guidance.

The analyst’s view frames 2027 as a potential low point for earnings as Meta invests before its Muse AI agent meaningfully adds revenue. Meta introduced Muse, its personal AI agent, on Sept. 8. CEO Mark Zuckerberg said AI is “accelerating our core business today, powering our next generation of products, and opening the door to entirely new enterprise opportunities.”

Meta’s second-quarter results showed revenue growth alongside faster expense growth. Revenue increased 28% year over year to $60.8 billion for the three months ended June 30, 2026. Costs and expenses rose 55% to $42 billion. Operating income fell 8% to $18.8 billion, and diluted earnings per share declined 13% to $6.18.

Advertising metrics also expanded during the quarter. Average daily active people across Meta’s apps reached 3.60 billion in June, up 3% from a year earlier. Ad impressions increased 14%, while average ad prices rose 12%.

Meta CEO Mark Zuckerberg said AI was “accelerating our core business today” and opening new enterprise opportunities. The company’s quarterly results show expenses rising faster than revenue, while the reported analyst forecast points to continued cost pressure in 2027.