TLDRMeta shares plunged 6.25% after hours despite a strong 28% revenue increase.Quarterly costs surged 55% as legal and severance charges pressured profit.Net income fell 14% while diluted earnings declined 13% to $6.18 per share.Capital spending reached $31.08 billion and reduced free cash flow sharply.Advertising stayed strong as impressions rose 14% and ad prices gained 12%.Meta Platforms (META) stock sank after hours as surging costs and weaker profits overshadowed sharp second-quarter revenue growth across its businesses. Shares fell 1.31% to close at $585.61, then plunged another 6.25% after hours to $549.00 following Wednesday’s earnings release. Although advertising strengthened, higher legal charges, severance expenses, and capital spending weighed heavily on the company’s quarterly financial performance.Meta Platforms, Inc., METARevenue Growth Fails to Offset Profit PressureMeta generated second-quarter revenue of $60.80 billion, marking a 28% increase from $47.52 billion during the comparable previous-year quarter. On a constant-currency basis, revenue rose 27%, confirming broad expansion across the company’s major global markets and advertising operations. Meanwhile, advertising demand remained firm as impressions increased 14% and average prices per advertisement climbed 12% from last year.Total costs and expenses surged 55% to $42.03 billion, far exceeding the company’s revenue growth rate during the quarter. Meta recorded $2.40 billion in legal charges and $1.18 billion in severance expenses connected with recent workforce restructuring actions. These items followed the May 2026 workforce reduction and placed significant pressure on operating earnings, margins, and quarterly profitability.Operating income fell 8% to $18.78 billion, while the reported operating margin narrowed sharply to 31% from 43%. Net income declined 14% to $15.85 billion, compared with $18.34 billion reported during the same quarter one year earlier. Diluted earnings also dropped 13% to $6.18 per share, highlighting how accelerating expenses weakened quarterly profitability and earnings quality.Capital Spending Restrains Free Cash FlowMeta committed $31.08 billion to capital expenditures, including principal payments connected with finance leases and companywide infrastructure expansion projects. The company continued expanding data centers, computing capacity, and systems supporting advertising, consumer products, and future enterprise opportunities worldwide. As a result, free cash flow reached only $784 million despite operating cash flow totaling $31.86 billion for the quarter.Meta ended June with $90.26 billion in cash, equivalents, and marketable securities, supporting continued investment and operating flexibility. Long-term debt reached $83.66 billion, while the company returned $1.35 billion through dividends and related dividend-equivalent payments during the quarter. Therefore, Meta retained substantial liquidity, although expanding debt and investment commitments increased demands across its balance sheet.Family daily active people averaged 3.60 billion in June, representing a 3% increase from the same month last year. Meta reported 75,472 employees, down 1%, while still counting about 8,000 workers affected by the May reduction. The company expects most affected employees to leave during the third quarter as it tightens workforce management and controls costs. The post Meta Platforms, Inc. (META) Stock: Sinks as Q2 Costs Surge 55% and Revenue Jumps 28% appeared first on Blockonomi.