META · 10-Q · 2026Q1 · Full report
Gross Margin Drivers
Meta Platforms, Inc. · 2026-04-30 · Importance 70 · Surprise 56 · In source text
Cost of revenue in the three months ended March 31, 2026 increased $2.65 billion, or 35%, to $10.218 billion compared to $7.572 billion in Q1 2025.,The increase in cost of revenue was primarily due to higher operational expenses related to data centers and technical infrastructure, including depreciation and energy costs.,Despite higher costs, income from operations rose 30% year-over-year to $22.872 billion, driven by advertising revenue growth, but margins were pressured by infrastructure and operational spend.
Key facts
- Cost of revenue in the three months ended March 31, 2026 was $10,218 million, an increase of $2.65 billion, or 35%, compared to the same period in 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | realized | -4.7% | Cost of revenue in the three months ended March 31, 2026 was $10,218 million, an increase of $2.65 billion, or 35%, compared to the same… |