Meta's Cash Flow Drops 91% as AI Spending Swallows Revenue Gains

Meta's Q2 2026 revenue grew 28% to $60.8 billion, yet free cash flow — the cash left after capital expenditures — collapsed 91% to $784 million. Operating income fell 8%; net income dropped 14%. The culprit is AI infrastructure spending, which Meta accelerated by raising its 2026 capex forecast. Shares fell as much as 10% after the July 29 earnings release.