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Meta Platforms (NASDAQ: META) reported a 33% year-over-year increase in revenue for Q1 2026, reaching over $56 billion, marking its fastest growth since 2021. Despite this strong performance, the stock faced a downturn due to rising costs associated with AI investments, which spooked investors.
Management has raised its capital expenditure outlook for 2026 to between $125 billion and $145 billion, an increase from the previous range of $115 billion to $135 billion. First-quarter capital expenditures reached $19.8 billion, a 45% increase from the previous year. The company’s operating margin stood at 41%, with ad impressions up 19% and average ad prices rising by 12%.
For Q2, Meta expects revenue between $58 billion and $61 billion, which implies a year-over-year growth of around 25%. Despite the upward trajectory in revenue and user engagement—with a 4% increase in daily active users—concerns over escalating operational costs continue to impact investor sentiment.
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