“Research and Development The following table presents research and development expenses (in millions, except percentages): Three Months Ended Six Months Ended June 30, June 30, 2025 2026 2025 2026 Research and development expenses $ 13,808 $ 18,219 $ 27,364 $ 35,251 Research and development expenses as a percentage of revenues 14 % 15 % 15 % 15 % Research and development expenses increased $4.4 billion and $7.9 billion from the three and six months ended June 30, 2025 to the three and six months ended June 30, 2026, primarily driven by increases in employee compensation expenses of $2.9 billion and $5.3 billion, as well as depreciation expense of $592 million and $1.1 billion, respectively.”
“Loss Contingencies We are subject to claims, lawsuits, regulatory and government inquiries and investigations, other proceedings, and consent orders involving competition, intellectual property, data privacy and security, tax and related compliance, labor and employment, commercial disputes, content generated by our users, goods and services offered by advertisers or publishers using our platforms, personal injury, consumer protection, and other matters.”
“Sales and Marketing The following table presents sales and marketing expenses (in millions, except percentages): Three Months Ended March 31, 2025 2026 Sales and marketing expenses $ 6,172 $ 7,606 Sales and marketing expenses as a percentage of revenues 7 % 7 % Sales and marketing expenses increased $1.4 billion from the three months ended March 31, 2025 to the three months ended March 31, 2026, primarily driven by increases in advertising and promotional activities of $600 million, employee compensation expenses of $404 million, and office space impairment charges of $300 million.”