META · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

Meta Platforms, Inc. · 2026-07-30 · Importance 64 · Surprise 56 · In source text

Second-quarter cost of revenue increased 33% to $11.330 billion, and six-month cost of revenue increased 34% to $21.549 billion. The increases were primarily caused by higher infrastructure expenses for data centers, technical infrastructure, and third-party cloud services. These costs reduced consolidated operating income to $18.775 billion in the quarter, down 8% year over year, despite 28% revenue growth. Infrastructure spending also includes depreciation, energy, bandwidth, and cloud costs associated with delivering Meta’s products.

Key facts

• Cost of revenue in the three months ended June 30, 2026 was $11,330 million compared to $8,491 million in the three months ended June 30, 2025, an increase of $2.84 billion, or 33%.
• The increases in cost of revenue were primarily due to higher infrastructure expenses related to our data centers, technical infrastructure, and third-party cloud services.

Impact estimates