Meta will release its second-quarter results after the US stock market closes on Wednesday. The market is currently focusing not only on the performance of its advertising business, but also on whether the company's investments in AI models, data centers, and computing power are beginning to yield a clearer revenue path.

The market first looks at revenue and expenses

According to analyst expectations compiled by LSEG, Meta's second-quarter revenue is expected to grow by 27% year-over-year. With the digital advertising business remaining robust, capital expenditure remains one of the most closely watched metrics in this earnings report.

Meta has been continuously increasing its investment in AI infrastructure over the past year, with investments including data centers, AI chips, and systems needed to run models. Analysts expect Meta's capital expenditures to be approximately $33.9 billion in the second quarter and approximately $136.7 billion for the full year.

In April, Meta raised its full-year capital expenditure guidance to a maximum of $145 billion from $135 billion. The market is watching to see if the company will further adjust this figure in its upcoming earnings report.

AI models and commercialization progress are attracting attention.

Besides expenses, investors are also waiting for Meta management to explain how to monetize the AI business more directly. Previously, Meta launched the Muse Spark 1.1 model. Alexandr Wang, the company's AI head, stated that this is one of Meta's strongest performing models for both agent and code tasks.

Meta also launched Muse Image and incorporated some of its features into a new monthly subscription plan, making it available to frequent users and creators. This is seen by the market as a step by the company to try to convert its AI product capabilities into sustainable revenue.

Since bringing in Wang in June 2025, Meta has significantly accelerated its AI strategy. At that time, Meta also bet on Scale AI, founded by Wang, through a deal involving a $14.3 billion investment.

Data center expansion continues

On the infrastructure front, Meta announced this week that it will partner with BlackRock to advance a $14 billion data center project in El Paso, Texas. A few weeks ago, the company also disclosed that its Hyperion data center project in Louisiana will cost over $50 billion.

Earlier, Meta also announced plans to build a $9 billion data center in Alberta, Canada. This continuous expansion indicates that Meta is attempting to catch up with major tech companies like Alphabet, Amazon, and Microsoft in terms of computing power.

However, unlike other hyperscale cloud service providers, Meta currently does not have a cloud infrastructure business. Meta CEO Mark Zuckerberg recently stated that the company may sell some of its AI computing power to third parties in the future. CNBC previously reported that Anthropic had begun preliminary negotiations to lease Meta's AI-related computing power.

Other business metrics were also tested.

User scale remains a fundamental metric in Meta's financial reports. According to StreetAccount data, the market expects Meta's daily active users to reach 3.61 billion in the second quarter, with an average revenue per user of $16.65.

Meanwhile, Reality Labs, which is responsible for virtual reality, augmented reality, and AI wearables, is expected to continue recording significant losses. The market anticipates that this division will generate approximately $423.4 million in revenue and incur a loss of approximately $5.07 billion in the second quarter.

For Meta, the key to this earnings report is not just whether revenue growth has met expectations, but also whether the company can demonstrate to the market that its large-scale AI investment is generating clearer expectations for business returns.