Meta's ad revenue jumps 27% as AI spending cuts free cash flow
Meta Platforms reported ad revenue of $59.36 billion, up 27% year‑over‑year, driven by 14% more ad impressions and a 12% increase in price per ad. The company’s AI‑driven Advantage Plus product now exceeds a $75 billion annual revenue run rate.
Key points
- Ad revenue rose 27% to $59.36 billion, with 14% more impressions and 12% higher ad prices.
- Analysts target $819, about 18% upside, while the stock sits at $694.25 below the $730 breakout level.
That lift pushed second‑quarter free cash flow down to $784 million from $8.55 billion a year earlier, while operating margin fell to 31% from 43% and long‑term debt rose to $83.66 billion. Diluted EPS of $6.18 missed the $7.22 consensus, ending a six‑quarter streak of beats.
Analysts set an average price target of $819, implying about 18% upside, but the stock trades at $694.25, below the $730 range where it has historically stalled.
The story so far
5 episodes →- Meta's ad revenue jumps 27% as AI spending cuts free cash flowthis story
What It Will Take to Get Meta Above This New Plateau
247wallst.com · 20 October 2026
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