What changed
EPS of $6.18 beat consensus of $5.92 by $0.26 (+4.4%). Revenue of $60.8B beat estimates and surged 28% YoY, driven by 14% higher ad impressions and 12% higher ad prices. Q3 revenue guidance of $61-64B was mixed vs consensus ~$62.5B. The headline EPS beat was overshadowed by a 55% YoY surge in costs, including $2.4B in legal charges and $1.18B in severance, which compressed operating margin to 31% from 43% and drove a 14% net income decline.
Why it matters
EPS of $6.18 beat consensus of $5.92 by $0.26 (+4.4%). Revenue of $60.8B beat estimates and surged 28% YoY, driven by 14% higher ad impressions and 12% higher ad prices. Q3 revenue guidance of $61-64B was mixed vs consensus ~$62.5B. The headline EPS beat was overshadowed by a 55% YoY surge in costs, including $2.4B in legal charges and $1.18B in severance, which compressed operating margin to 31% from 43% and drove a 14% net income decline.
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Aug 12, 2026 05:14 AM ET