Meta Misses EPS as Legal Charges and Severance Hit Margins
Meta grew revenue 27.96% but missed EPS as AI spending, $2.40 billion in legal charges, and $1.18 billion in severance pressured margins. CapEx surged to $30.116 billion, and free cash flow fell 91.31% to $784 million. Gross and operating margins declined, with the ad business still strong and results weighed down by these costs.