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๐Ÿ“Š View earnings presentation
๐Ÿ“„ Source: Motley Fool
โšก Q/Q Change Highlights
  • Revenue $56.3B, +33% YoY (+29% cc; beat $55.45B cons) โ€” led by AI-driven ranking improvements (ad rev +33%)
  • FY26 CapEx RAISED to $125โ€“145B (from $115โ€“135B) โ€” infrastructure bet on track; no 2027 capex outlook (dynamic planning)
  • Operating income $22.9B (41% OPM); Family of Apps revenue $55.9B (+33%)
  • Reality Labs revenue $402M (-2% YoY) โ€” Quest headset weakness offset by strong AI glasses growth
  • No 2027 capex guide โ€” "undergoing a very dynamic planning process" on capacity needs

๐ŸŽ™๏ธ META โ€” Apr 29, 2026

๐Ÿ“„ Original Transcript

Meta Platforms (META) Q1 2026 Earnings Call Transcript

Date: April 29, 2026 | Source: Motley Fool (fool.com) / company press release

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Mark Zuckerberg (Founder & CEO): Good afternoon, and thanks for joining us today. The field is moving pretty quickly, and that is basically the main thing that we have learned over the last quarter: we started this pretty big bet, and it is on track for our plan. On that note, we are increasing our infrastructure CapEx forecast for this year.

Susan Li (CFO): Thanks, Mark, and good afternoon, everyone. Q1 total family of apps revenue was $55.9 billion, up 33% year over year. Q1 family of apps ad revenue was $55.0 billion, up 33%, or 29% on a constant currency basis. Within our Reality Labs segment, Q1 revenue was $402 million, down 2% year over year due to lower Quest headset sales, which were partially offset by continued strong growth in AI glasses revenue. Q1 total revenue was $56.3 billion, up 33%, or 29% on a constant currency basis. First quarter operating income was $22.9 billion, representing a 41% operating margin.

Turning to the second driver of our revenue performance, increasing monetization efficiency. Next, I would like to discuss our approach to capital allocation. Turning to the expense and CapEx outlooks, we are increasing our infrastructure CapEx forecast for this year to between $125 billion and $145 billion, up from our prior range of $115 billion to $135 billion.

Susan Li (on 2027 capex): We are not providing a specific outlook for 2027 CapEx, and we are frankly undergoing a very dynamic planning process ourselves as we are working through what our capacity needs will be over the coming years.

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Key Q1 2026 Financials (from company release / CNBC)

  • Total revenue: $56.31B (+33% YoY, +29% cc; beat $55.45B consensus)
  • Family of Apps revenue: $55.9B (+33%); ad revenue: $55.0B (+33%, +29% cc)
  • Reality Labs revenue: $402M (-2% YoY; lower Quest headset sales, strong AI glasses growth)
  • Operating income: $22.9B (41% operating margin)
  • FY26 CapEx raised to $125โ€“145B (from $115โ€“135B)
  • No specific 2027 CapEx outlook โ€” "very dynamic planning process"

๐Ÿ“ Summary

META (Meta Platforms) โ€” Q1 2026 (Apr 29, 2026). Revenue $56.3B (+33% YoY, beat); 41% OPM; FY26 capex raised to $125โ€“145B as AI infrastructure bet "on track."

Results

  • Revenue: $56.31B (+33% YoY, +29% cc; beat $55.45B); Family of Apps $55.9B (+33%); ad rev $55.0B (+33%, +29% cc)
  • Reality Labs: $402M rev (-2% YoY; lower Quest, strong AI glasses); operating income $22.9B (41% OPM)
  • Revenue growth driven by AI-driven ranking improvements + monetization efficiency (increasingly monetized recommendation surfaces)

Guidance

  • FY26 capex raised to $125โ€“145B (from $115โ€“135B) โ€” "increasing our infrastructure CapEx forecast for this year"
  • No specific 2027 capex outlook; dynamic capacity planning across coming years
  • Expenses/other FY26 detail to follow at Q2 (see Q2 for narrowed $130โ€“145B capex and $165โ€“169B expenses)

Capex

  • FY26 capex $125โ€“145B (raised $10B floor & ceiling); no 2027 number yet; infrastructure build "on track for our plan" per Zuckerberg

Key Q&A

  • Q (on 2027 capex step-up): Peers mention a potential significant step-up โ€” can you comment?
    A: Not providing a specific 2027 outlook; undergoing a very dynamic planning process working through capacity needs over coming years
  • Management framing: the big AI bet is "on track"; monetization efficiency is a key driver of revenue performance beyond ad pricing

Notes

  • The capex raise ($115โ€“135B โ†’ $125โ€“145B) is the headline โ€” an aggressive infrastructure bet tied to AI ranking/monetization and the "big bet" Zuckerberg references
  • Strong start: 33% revenue growth with 41% operating margin โ€” leverage intact despite the capex step-up
  • Reality Labs remains a drag on revenue growth but AI glasses are the bright spot; Quest softening
  • Watch: 2027 capex trajectory (deliberately unguided), expense growth, and AI-glasses momentum