Meta Platforms, Inc. (META) Earnings History

Meta Platforms, Inc. - Q1 2026 EarningsBeat

Filed at: Apr 29, 2026, 4:05 PM EDT|Read from source

EXECUTIVE SUMMARY

Meta Platforms reported a strong first quarter with significant revenue and net income growth, driven by robust advertising performance and a notable tax benefit. The company is investing heavily in capital expenditures to support future capacity, particularly for AI initiatives, while maintaining a positive outlook for operating income.

POSITIVE HIGHLIGHTS

  • Revenue increased by 33% year-over-year to $56.31 billion, exceeding prior quarter growth rates.

    positive
  • Net income surged by 61% year-over-year to $26.77 billion, boosted by a significant tax benefit.

    positive
  • Diluted EPS grew by 62% year-over-year to $10.44, reflecting strong profitability.

    positive
  • Family daily active people (DAP) increased by 4% year-over-year to 3.56 billion.

    positive
  • Ad impressions increased by 19% year-over-year, and average price per ad increased by 12% year-over-year.

    positive
  • Operating margin remained strong at 41%, consistent with the prior year.

    neutral

CONCERNS & RISKS

  • Total costs and expenses increased by 35% year-over-year, outpacing revenue growth of 33%.

    attention
  • Capital expenditures increased significantly to $19.84 billion, with the full-year outlook raised to $125-145 billion, reflecting substantial investments in AI and data center capacity.

    attention
  • A slight decline in DAP quarter-over-quarter was attributed to internet disruptions and restrictions in Iran and Russia.

    attention
  • The company continues to monitor active legal and regulatory matters, including potential material losses from ongoing trials in the U.S.

    attention
  • Cash, cash equivalents, and marketable securities decreased by $7.998 billion quarter-over-quarter, primarily due to investing activities.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$56.31B
+33.0%
Prior year: $42.31B
Net Income
Quarterly
$26.77B
+61.0%
Prior year: $16.64B
EPS (Diluted)
Quarterly
N/A
N/A
Operating Income
Quarterly
$22.87B
+30.0%
Prior year: $17.55B
EPS (Basic)
Quarterly
$10.57
+60.4%
Prior year: $6.59

MARGIN ANALYSIS

Operating Margin
Current Quarter
41.0%
Prior Year
41.0%
YoY Change
0 bps
Net Margin
Current Quarter
47.5%
Prior Year
39.3%
YoY Change
+820 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q1 2026 2026

VISUAL OVERVIEW

|
Family of Apps
0.0%
N/A
CC: +29.0%
Reality Labs
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% TotalCC
Family of Apps
N/A+29.0%
Reality Labs
N/A
Total Revenue$0.00M100.0%

Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.

MANAGEMENT GUIDANCE

Q2 2026

Revenue
$58000000.0B$61000000.0B
Mid-point: $59500000.0B
"Assumes foreign currency is an approximately 2% tailwind to year-over-year total revenue growth."

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

EARNINGS CALL —

Call date
2026-04-29
Tone
cautious
Hedge density
N/A
Deflection rate
33.3%
View transcript Source Accession: 0001628280-26-028364

CALL GUIDANCE — Q1 2026 2026

MetricValuePeriodSpecificityvs Prior
revenue$58-61 billionQ2 2026tight_rangeNew
total_expenses$162-169 billionFY2026tight_rangeMaintained
capital_expenditures$125-145 billionFY2026tight_rangeRaised
tax_rate13-16%remaining quarters of 2026tight_rangeNew

CAPITAL ALLOCATION — Q1 2026 2026

  • capex_policyaccelerate

    this year

  • capex_policycontinue

    2026

  • liquiditycontinue

    $81.2 billion · quarter end

MACRO STANCE — Q1 2026 2026

  • supply_chainheadwindnew
  • fxtailwindnew

Q&A SIGNALS — Q1 2026 2026

Hedge rate
N/A
Concerns retained
2
Forward commits
0

SPECIAL ITEMS & ADJUSTMENTS

Q1 2026
Income tax benefit recognized related to U.S. Treasury Notice 2026-7 addressing Corporate Alternative Minimum Tax treatment of previously capitalized U.S. research and development costs.
This benefit partially offsets a non-cash tax charge recorded in Q3 2025. Excluding this benefit, effective tax rate would have been 37 percentage points higher and diluted EPS would have been $3.13 lower.
+$8,030M
$3.13 per share

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

We had a milestone quarter with strong momentum across our apps and the release of our first model from Meta Superintelligence Labs.

Meta Platforms, Inc., Q1 2026 2026 Earnings Call

We're on track to deliver personal superintelligence to billions of people.

Meta Platforms, Inc., Q1 2026 2026 Earnings Call

We expect second quarter 2026 total revenue to be in the range of $58-61 billion.

Meta Platforms, Inc., Q1 2026 2026 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Ad impressions
N/A
+19.0% YoY
Average price per ad
N/A
+12.0% YoY
Family daily active people (DAP)
3560.0M
+4.0% YoY
Prior year: 3423.1M
people
Headcount
78.0K
+1.0% YoY
Prior year: 77.2K
employees

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.