Meta posts higher earnings but increases its 2026 capital spending forecast
Meta Platforms, the parent of Instagram and Facebook, reported first-quarter results that beat analysts’ expectations, with earnings and revenue rising year over year and the company also lifting its forecast for 2026 capital spending.
In the January-March period, Meta earned $26.77 billion, or $10.44 per share, up from $16.64 billion, or $6.43 per share, in the same quarter a year earlier. Revenue rose 33% from the prior year to $56.31 billion, compared with analysts’ expectations cited by FactSet that Meta would earn $6.67 per share on revenue of $55.6 billion.
CEO Mark Zuckerberg said the quarter marked “a milestone quarter with strong momentum across our apps and the release of our first model from Meta Superintelligence Labs,” adding that “We’re on track to deliver personal superintelligence to billions of people.” In that same framing, Zuckerberg pointed to progress tied to Meta Superintelligence Labs as the company moves deeper into AI-related product development.
Meta also reported user figures that showed a slight decline in daily use. The company said about 3.56 billion people used at least one of its apps on a daily basis in March, down slightly from December, attributing the drop to internet disruptions in Iran and restrictions on access to WhatsApp in Russia.
For the next quarter, Meta forecast total revenue in a range of $58 billion to $61 billion. The company said that compares with an average analyst estimate of $59.48 billion for the second and current quarter.
Meta further updated its expected capital expenditures for the year, raising the range to $125 billion to $145 billion from a previously announced range of $115 billion to $131 billion. Meta said the change reflected expectations of higher component pricing and, “to a lesser extent,” additional data center costs—changes that align with the company’s emphasis on AI infrastructure buildout.
The financial results came as Meta continues to expand AI-related spending. The company said when it initially forecast 2026 spending at the close of the prior year that the year-over-year growth was driven by increased investment to support Meta Superintelligence Labs efforts, and it has also said it is laying off about 10% of its workforce, or about 8,000 workers, as it ramps up spending on AI infrastructure and hires AI experts.
J.P. Gownder, vice president and principal analyst at Forrester, said in a statement that “Investments in data centers are part of a massive gamble by Big Tech firms to win the AI race, to develop artificial general intelligence and to drive massive revenue and profits in the future,” while warning that “the risks associated with alienating the top-tier human workforce that took years to build too often goes unnoticed.” Meta said it ended March with nearly 78,000 workers, up 1% year over year.
On a post-earnings call focused on AI agents and AI-powered products, Zuckerberg said he does not believe AI will replace people, saying: “Instead, I think that AI is going to amplify people’s ability to do what you want, whether that’s to improve your health, your learning, your relationships, your ability to achieve your personal career goals and more.” Susan Li, Meta’s CFO, said on the call that the quarter showed strong execution in its core ads and engagement initiatives, while also noting that legal and regulatory matters could affect progress.
Li also cited “headwinds in the EU and the US that could significantly impact our business and financial results,” and said there has been increased scrutiny related to “youth-related issues.” She pointed to a landmark social media addiction trial in Los Angeles in which the jury found Meta liable for harms to a young woman who began using Meta’s platforms and YouTube as a child, and she said additional trials scheduled for this year and beyond “may ultimately result in a material loss.”
Meta’s shares fell in extended trading, dropping more than 6% after the results and guidance were released.