META · Meta Platforms, Inc. Depositary Shares representing a 1/20th Interest in a Share of Series A Mandatory Convertible Preferred Stock

Meta's Q1 2026 results reflect robust top-line growth and a significant tax benefit that boosted net income. Revenue of $56.3 billion grew 33% year-over-year, driven by a 19% increase in ad impressions and a 12% rise in average price per ad. The company's Family of Apps daily active people reached 3.56 billion, up 4% YoY, though a slight sequential decline was attributed to internet disruptions in Iran and a WhatsApp access restriction in Russia. Operating income rose 30% to $22.9 billion, with operating margin stable at 41%, as costs and expenses grew 35% to $33.4 billion, largely due to higher research and development spending ($17.7 billion, up 46% YoY). Net income surged 61% to $26.8 billion, including an $8.03 billion income tax benefit from U.S. Treasury Notice 2026-7, which partially offset a prior non-cash tax charge. Excluding this benefit, diluted EPS would have been $7.31 versus the reported $10.44. Management commentary highlighted a milestone quarter with strong app momentum and the release of the first model from Meta Superintelligence Labs. For Q2 2026, Meta guided revenue of $58-61 billion, implying 37-44% YoY growth, with a 2% foreign exchange tailwind. Full-year 2026 total expenses are expected to be $162-169 billion, unchanged from prior outlook, while capital expenditures guidance was raised to $125-145 billion from $115-135 billion, reflecting higher component pricing and additional data center costs. The company also noted ongoing legal and regulatory headwinds, particularly in the EU and U.S., that could materially impact results.