Meta lifts the floor on its AI spending as revenue jumps but cash flow collapses

Meta increased its AI investment forecast for 2026 to $130-$145 billion, nearly doubling prior estimates, while reporting Q2 revenue growth of 28% to $60.8 billion driven by AI-enhanced ads. However, free cash flow plunged 91% to $784 million due to heavy AI spending, and earnings missed expectations amid legal costs.