Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) delivered a blockbuster first quarter on Wednesday, posting revenue and earnings that handily topped Wall Street expectations, but investors were spooked by a steep increase in the company's capital expenditure outlook, sending shares down nearly 6% in after-hours trading. The social media giant reported first-quarter revenue of $56.31 billion, up 33% year-over-year and ahead of analyst estimates ranging from $55.36 billion to $55.5 billion.
Meta Platforms posted its biggest quarterly revenue jump in recent history in the first quarter but said it would spend even more money to build out AI data centers this year than forecast.
In Meta's first-quarter earnings report, the company said Reality Labs recorded an operating loss of over $4 billion while bringing in $402 million in sales. The Reality Labs unit has now accumulated over $80 billion in total operating losses since late 2020.
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Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) will report its latest quarterly earnings after Wednesday's closing bell, with Wall Street analysts largely expecting another quarter of solid revenue and earnings growth, supported by continued strength in digital advertising and ongoing investments in artificial intelligence. On average, analysts expect Meta to report a 31% year-over-year surge in revenue to $55.49 billion, with earnings per share projected to grow by 4.4% to $6.71.
Ahead of Meta Platforms' (NASDAQ: META) Q1 2026 earnings release, a majority of Wall Street analysts are bullish on the company's stock.
“Meta's own general conditions indicate their services are not intended for minors under 13. Yet, our preliminary findings show that Instagram and Facebook are doing very little to prevent children below this age from accessing their services,” Henna Virkkunen, the commission's executive vice president for Tech Sovereignty, said in an accompanying statement.
Meta Platforms is set to report earnings as investors weigh strong ad growth against rising AI-related capital spending.
Dryden Pence believes Meta Platforms (META) needs to show ways it can maintain a dominant position in the AI race, even if that means raising CapEx once again. He calls the spending an investment that will serve as a catalyst down the road.
Meta Platforms (META) is scheduled to report earnings after the market closes Wednesday, and traders anticipate a big move from the social media giant's stock following the results.
A US government agency has abruptly closed an investigation into allegations that Meta Platforms could access encrypted messages on its WhatsApp platform, according to a Bloomberg report. The probe, conducted by an investigator within the Office of Export Enforcement at the Commerce Department's Bureau of Industry and Security, had examined claims that some Meta employees and contractors could view the contents of encrypted WhatsApp messages.
Meta Platforms (NASDAQ:META | META Price Prediction) reports Q1 2026 earnings on Wednesday, April 29, after market close.