Meta Platforms (META) investor relations material

Executive summary

• Q1 2026 revenue grew 33% year-over-year to $56.31 billion, driven by robust ad performance, higher ad prices and impressions, and strong app engagement.

• Net income reached $26.77 billion, up 61% year-over-year, significantly boosted by an $8.03 billion tax benefit; diluted EPS was $10.44, or $7.31 excluding the tax benefit.

• Family daily active people averaged 3.56 billion in March 2026, with a slight sequential decline due to internet disruptions in Iran and Russia.

• Major AI milestones achieved, including the launch of Muse Spark and Meta Superintelligence Labs model, fueling product innovation and engagement.

• AI-driven product and infrastructure investments are accelerating, with a focus on personal and business agents and ongoing headcount optimization.

Financial highlights

• Total revenue: $56.31 billion, up 33% year-over-year (29% in constant currency); ad revenue: $55.02 billion, up 33%; Family of Apps revenue: $55.91 billion; Reality Labs revenue: $402 million, down 2%.

• Operating income: $22.87 billion, with a 41% operating margin; Family of Apps operating income: $26.90 billion; Reality Labs operating loss: $4.03 billion.

• Net income: $26.77 billion ($10.44/share); excluding the tax benefit, net income would have been $18.74 billion ($7.31/share).

• Free cash flow: $12.39 billion; cash and marketable securities: $81.18 billion; debt: $58.7–$59.0 billion.

• Capital expenditures: $13.69–$19.84 billion in Q1 2026, primarily for AI infrastructure and data centers.

Outlook and guidance

• Q2 2026 revenue expected between $58–$61 billion, with a 2% currency tailwind.

• Full-year 2026 expenses projected at $162–$169 billion; CapEx raised to $125–$145 billion due to higher component and data center costs.

• Operating income for 2026 expected to exceed 2025 levels; Reality Labs operating losses to remain similar to 2025.

• Tax rate for the remainder of 2026 expected between 13% and 16%.