META · 10-Q · 2026Q1 · Full report

Product Launch and Transition

Meta Platforms, Inc. · 2026-04-30 · Importance 63 · Surprise 50

Reality Labs revenue decreased $10 million, or 2% year‑over‑year, as lower Meta Quest headset sales were offset by increased sales of AI glasses. This indicates a product mix transition within RL toward AI glasses while Quest demand softened in the quarter. RL remains a material drag on operating profit — reducing consolidated operating profit by approximately $4.03 billion in the quarter — and RL losses are expected to remain similar through 2026. The change in hardware sales mix has implications for inventory, manufacturing and go‑to‑market strategy for consumer devices.