| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 38 | 23.0x | 18.0x | Bottom tier | |
Growth | 81 | 27.7% | 7.1% | Top tier | |
Quality | 88 | 21.8% | 4.5% | Top tier | |
Safety | 87 | 0.2x | 2.6x | Top tier | |
Capital Return | 16 | 0.34% | 2.11% | Bottom tier | |
Momentum | 37 | -21.3% | 3.0% | Bottom tier | |
Sentiment | 70 | 41 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Meta Platforms operates an ecosystem of apps that includes Facebook, Instagram, WhatsApp, Messenger, and Threads, and generates most of its income from selling digital advertising through Family of Apps. In Q2 FY2026, Family of Apps revenue was approximately $60.4 billion, including $59.4 billion from advertising and $1.0 billion from other revenue, while Reality Labs recorded revenue of $431 million. The company is working to expand its revenue sources through paid WhatsApp messaging, Meta One subscriptions, business agents, the Muse Spark API, and AI glasses.
In Q2 FY2026, total revenue rose 28% year over year to $60.8 billion, and gross profit reached $49.5 billion, equivalent to a gross margin of approximately 81.4%. Operating income was $18.8 billion at an operating margin of 31%, but declined 8% year over year, while net income reached $15.8 billion and earnings per share were $6.18. Quarterly expenses of $42 billion included $2.4 billion in legal charges and $1.2 billion in severance expenses; the company said operating income would have grown 9% excluding these two items.
The revenue mix remains highly dependent on advertising, with Family of Apps advertising revenue representing approximately 97.7% of total Q2 FY2026 revenue. By contrast, other Family of Apps revenue rose 73% to $1 billion, supported by paid WhatsApp messaging and subscriptions, while Reality Labs revenue increased 16% due to growth in AI glasses despite lower Quest device sales. On a trailing twelve-month basis in FY2026, revenue reached $215.0 billion, net income was $70.6 billion, and earnings per share were $27.53.
The stock carries a consensus Buy rating with an average price target of $723.69, within a wide range of $595 to $883; the average is below the 52-week range high of $790.8, while the highest target exceeds that high and the lowest target remains above the range low of $520.26. Based on trailing twelve-month FY2026 earnings per share of $27.53, analysts' targets imply price-to-earnings multiples of approximately 21.6 times at the low end, 26.3 times at the average, and 32.1 times at the high end. The wide range reflects a clear disagreement over the ability of advertising growth and AI agents to offset capital expenditures of $130–145 billion and the legal risks that emerged in August 2026.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Advertising was by far the largest driver, with Family of Apps advertising revenue of approximately $59.4 billion out of total revenue of $60.8 billion. Ad impressions rose 14%, and the average global price per ad increased 12% year over year. AI improvements contributed to an 8.3% increase in Facebook ad clicks and a 15.7% increase in conversions, linking revenue growth to improved platform performance for advertisers.
Q2 FY2026 showed tangible results in advertising and recommendations, including a 15.7% increase in Facebook conversions and a 1% improvement in Instagram app-event conversions in early experiments. The annual revenue run rate for Advantage+ solutions reached more than $75 billion, and more than 9 million small businesses used AI-powered ad-creation tools. However, expected annual capital expenditures of between $130 billion and $145 billion make proving the return on the new infrastructure a critical factor.
Threads surpassed 500 million monthly active users, and Meta completed the global rollout of its ads during Q2 FY2026. On WhatsApp, the number of businesses using Meta's business agents exceeded 1 million weekly, while paid messaging and subscriptions supported 73% growth in other Family of Apps revenue to $1 billion. Movida recorded a 44% increase in daily bookings through WhatsApp, with 85% of conversations resolved by the agent without human assistance.
Automated analysis for informational purposes only — not investment advice.
Revenue rose 28% in Q2 FY2026, but expenses increased 55% to $42 billion. Expenses included $2.4 billion in legal charges and $1.2 billion in severance expenses, alongside higher infrastructure, compensation, cloud computing, and third-party AI token costs. As a result, operating income declined 8% to $18.8 billion, while the company said it would have grown 9% excluding the legal charges and severance expenses.
Reports on August 26, 2026, indicated a proposed settlement with a reported value ranging between $17.1 billion and $18 billion, subject to court approval and Meta's commitment to new safeguards for underage users. The company had warned on its July 29, 2026 call of multiple youth-related trials during FY2026 and the possibility of incurring a material loss. The risk is not limited to the financial amount, because any restrictions on infinite scrolling, recommendations, or Instagram features could affect engagement and advertising volume.
Meta expects revenue of between $61 billion and $64 billion in Q3 FY2026, with an estimated one-percentage-point foreign-exchange headwind to annual growth. The company set FY2026 expenses at between $165 billion and $169 billion and capital expenditures at between $130 billion and $145 billion. It also reaffirmed its expectation that FY2026 operating income will exceed the FY2025 level, without providing specific guidance for FY2027 capital expenditures.
