META · 10-Q · 2026Q1

Meta Platforms, Inc.

Filed 2026-04-30 · Technology · View original filing on EDGAR

Ranked Events

• Capital Expenditures and AIImportance 100 · Surprise 100
  Meta reported capital expenditures of $19.84 billion for the quarter, driven largely by purchases of property and equipment for servers, data centers and network infrastructure. The company expects 2026 capital…
• Income Tax Rate ChangesImportance 90 · Surprise 100
  On February 18, 2026, Treasury Notice 2026-7 provided relief from the U.S. Corporate Alternative Minimum Tax (CAMT) related to expensing of previously capitalized U.S. R&D costs, and Meta recognized an $8.03 billion…
• AI Infrastructure InvestmentImportance 83 · Surprise 74
  Meta materially increased infrastructure investments tied to AI across its products, citing significant spending on servers, data centers, network infrastructure and third‑party cloud capacity to support generative AI…
• Operating Expense TrendsImportance 83 · Surprise 74
  Research and development expense rose $5.55 billion, or 46%, to $17.699 billion in Q1 2026, driven primarily by higher employee compensation (including increased share-based compensation) and higher infrastructure costs for AI initiatives.,Marketing and sales expense increased $151 million, or 5%, to $2.908 billion, driven by higher marketing/promotional spend and professional services for platform integrity.,General and administrative expense increased $334 million, or 15%, to $2.614 billion, primarily due to higher legal-related costs partially offset by a reversal of the Canadian Digital Services Tax liability.
• R&D Investment in AIImportance 78 · Surprise 74
  Research and development expense rose $5.55 billion, or 46% year‑over‑year, reflecting materially higher investment in engineering, technical teams and infrastructure. The increase was driven by higher employee…
• Interest and Other Income (Expense), netImportance 71 · Surprise 82
  Total interest and other income (expense), net was a loss of $1.120 billion in Q1 2026, a decrease of $1.95 billion versus the prior year period.,The decline was driven primarily by an increase in unrealized losses on marketable equity investments, and the company recorded a loss on equity investments and other, net of $1.076 billion in Q1 2026.,Foreign currency exchange losses and higher interest expense (interest expense increased to $562 million) also contributed to the decrease in interest and other income (expense), net.
• Market Demand TrendsImportance 70 · Surprise 56
  Advertising revenue increased $13.63 billion, or 33%, year‑over‑year, driven by a 19% increase in ad impressions and a 12% increase in average price per ad. Meta states ad impressions grew across all regions,…
• Operating Cash Flow TrendsImportance 70 · Surprise 56
  Net cash provided by operating activities was $32.226 billion in Q1 2026 compared with $24.026 billion in Q1 2025.,Cash from operations primarily consisted of $26.77 billion of net income adjusted for non-cash items including $6.03 billion of share-based compensation expense and $6.00 billion of depreciation and amortization.,The increase in operating cash flows was driven by higher cash collections from customers due to revenue growth, partially offset by higher operational spending.
• Gross Margin DriversImportance 70 · Surprise 56
  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.
• Revenue Performance and MixImportance 70 · Surprise 56
  Total revenue for the first quarter of 2026 was $56.31 billion, an increase of 33% year-over-year driven by higher advertising revenue.,Family of Apps (FoA) revenue increased $14.01 billion (33%) to $55.909 billion in Q1 2026, with advertising revenue up $13.63 billion (33%) to $55.024 billion.,FoA other revenue rose $375 million (74%) year-over-year, primarily from WhatsApp paid messaging and Meta Verified subscriptions, while Reality Labs revenue declined $10 million (2%) to about $402 million due to lower Meta Quest sales offset by AI glasses.,Ad impressions grew 19% year-over-year and average price per ad increased 12% in Q1 2026, and revenue growth by user geography was +29% U.S. & Canada, +39% Europe, +29% Asia‑Pacific, and +40% Rest of World.
• Segment ProfitabilityImportance 65 · Surprise 48
  Family of Apps income from operations increased $5.14 billion, or 24%, to $26.900 billion in Q1 2026, driven by higher advertising revenue.,Reality Labs reported an operating loss of $4.028 billion in Q1 2026, an improvement of $182 million, or 4%, versus Q1 2025.,FoA's profit growth was partially offset by higher infrastructure and employee compensation costs, while RL's reduced loss was primarily due to lower employee compensation.
• Interest Expense TrendsImportance 63 · Surprise 64
  Total interest and other income (expense), net decreased $1.95 billion in Q1 2026 versus Q1 2025, driven in part by increased unrealized losses on marketable equity investments. Interest expense increased to $(562)…
• Product Launch and TransitionImportance 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…
• Leases and Contractual CommitmentsImportance 63 · Surprise 42
  Meta has substantial future lease and contractual commitments tied to data centers, colocations, network infrastructure and cloud capacity. Operating and finance leases not yet commenced were approximately $182.88…
• Datacenter Capacity ExpansionImportance 63 · Surprise 42
  Meta has very large non‑cancelable infrastructure commitments totaling $237.67 billion, primarily for third‑party cloud capacity arrangements and investments in servers, network infrastructure and data centers.…
• Advertising Regulatory ChangesImportance 59 · Surprise 60
  Legislative and regulatory developments—specifically GDPR (and CJEU interpretations), the ePrivacy Directive, the EU Digital Services Act and Digital Markets Act, and U.S. state privacy laws—have limited Meta’s ability…
• Distribution Channels and Non‑Ad RevenueImportance 59 · Surprise 82
  FoA other revenue rose $375 million, or 74% year‑over‑year, with growth primarily from paid messaging on WhatsApp and Meta Verified subscriptions. This indicates increasing monetization via direct user payments and…
• Reality Labs Investment and LossesImportance 58 · Surprise 42
  Reality Labs continues to be a material investment area and source of operating losses, reducing consolidated operating profit by approximately $4.03 billion in the quarter. Meta is investing in virtual and augmented…
• Supply Chain Purchase CommitmentsImportance 58 · Surprise 42
  Meta reclassified $5.00 billion of unrestricted money market funds to restricted cash equivalents tied to the terms of a multi‑year purchase agreement related to infrastructure. These restricted funds are not available…
• Outstanding IndebtednessImportance 54 · Surprise 14
  As of March 31, 2026, Meta had $59.00 billion aggregate principal of outstanding senior unsecured notes maturing between 2027 and 2065. Short‑term and long‑term future interest payment obligations as of March 31, 2026…

Revenue by Product (in millions)

Revenue by Geography (in millions)