Meta reported revenues of $56.3 billion in Q1 2026, exceeding analysts' estimates. Shares fell by 6% due to rising capital expenditures.

Meta announced on Wednesday revenues of $56.3 billion in the first quarter of 2026, exceeding analysts' estimates of $55.45 billion. Revenues increased by 33% compared to the same period last year, and for the second quarter, the company estimates revenues between $58 and $61 billion. However, Meta's shares fell by over 6% in after-hours trading, mainly due to the announcement regarding capital expenditures, which will be between $125 and $145 billion, compared to the previous estimate of $115-135 billion. The company explained that the increase in costs is due to higher prices for components and additional expenses for data centers. Additionally, the number of daily active users rose to 3.56 billion, but it was below analysts' estimates. In the context of rising expenses, Meta announced the layoff of approximately 8,000 employees, representing 10% of the workforce, and the freezing of 6,000 vacant positions. Despite a 1% annual increase in the total number of employees, the trend is expected to reverse in the coming quarters. Recently, Meta launched Muse Spark, an artificial intelligence model, and investors are awaiting a clear monetization strategy for these models.