Meta Platforms Inc - Class A
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.69%.
Did META Beat Earnings? Q1 2026 Results
Meta Platforms delivered a blowout first quarter for fiscal 2026, posting earnings per share of $10.44 against a consensus estimate of $6.66, a beat of 56.79% that extended the company's streak of exceeding EPS expectations to five consecutive quarters. Revenue climbed 33.1% year-over-year to $56.31 billion, edging past the $55.56 billion consensus, fueled by a 19% surge in ad impressions and a 12% rise in average price per ad across its Family of Apps, where daily active people reached 3.56 billion. The outsized EPS figure was substantially shaped by an $8.03 billion income tax benefit tied to U.S. Treasury guidance on Corporate Alternative Minimum Tax treatment of capitalized R&D costs, which pushed the effective tax rate to -23% and added $3.13 per share to the bottom line. Reality Labs continued to weigh on results with a $4.03 billion operating loss, though that narrowed modestly from a year ago. Looking ahead, Meta guided Q2 2026 revenue to $58 to $61 billion and raised its full-year capital expenditure outlook to $125 to $145 billion, reflecting accelerating infrastructure investment as competition in AI intensifies across the sector.
- Ad impressions increased 19% year-over-year across Family of Apps
- Average price per ad increased 12% year-over-year
- Family daily active people grew 4% year-over-year to 3.56 billion
- $8.03 billion income tax benefit from U.S. Treasury Notice 2026-7 addressing Corporate Alternative Minimum Tax treatment of R&D costs
- Foreign currency provided approximately 4 percentage points of revenue growth tailwind
“We had a milestone quarter with strong momentum across our apps and the release of our first model from Meta Superintelligence Labs.”
Meta CEO, on the earnings call
Forward Guidance & Outlook
Meta expects Q2 2026 total revenue of $58–61 billion, with foreign currency providing an approximately 2% tailwind to year-over-year growth. Full-year 2026 total expenses are expected to be $162–169 billion, unchanged from prior guidance. The company continues to expect full-year 2026 operating income above 2025 levels. Capital expenditures (including finance lease payments) are now projected at $125–145 billion for 2026, increased from $115–135 billion, reflecting higher component pricing and additional data center costs. The tax rate for the remaining quarters of 2026 is expected to be 13–16%. The company flagged active legal and regulatory headwinds in the EU and U.S., including youth-related litigation with additional trials scheduled in 2026 that may result in material losses.
META YoY Financials
META Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.