Deutsche Bank predicts Meta will deliver strong quarterly results next Wednesday, citing that the platform's AI-powered advertising tools are enhancing ad performance and helping clients achieve better returns on their advertising expenditure.

Meta is scheduled to release its second-quarter fiscal 2026 earnings after the U.S. market closes on Wednesday, July 29, 2026.

"Our advertising survey results are overwhelmingly positive, highlighting stronger conversion performance, rising return on investment for advertisers, and continued benefits from Meta's investments in AI-driven ranking, retrieval, and campaign automation," the analysts wrote.

The bank has raised its revenue estimate for Meta to $60.5 billion from $60.3 billion, slightly above the Wall Street consensus. Given Alphabet's consistent growth in search revenue, Deutsche Bank believes this provides a "positive read-through" for Meta.

Looking ahead to the third quarter, Deutsche Bank noted that investor expectations are centered on the high end of Meta's revenue guidance range, which is approximately $64 billion.

"We believe this target is achievable if Meta can sustain its recent trend of exceeding initial guidance, supported by improved advertising efficiency, continued growth in user engagement, and an increasing contribution from its business messaging segment," they added.

This analysis was provided by Deutsche Bank, with a focus on the potential for Meta to surpass market expectations.