Meta Platforms (META) Q1 2026 quarterly revenue was $56.3 billion, up 33% year over year and beating expectations; earnings per share were $10.44, 57% above market expectations. On June 1, the stock price fell to $600.47. The direct trigger for the stock decline was Meta raising its 2026 capital expenditure guidance from $125 billion to as high as $145 billion.
Q1 2026 Core Financials: Results Beat Expectations Alongside Higher CapEx Guidance
Meta’s confirmed financial data for Q1 2026 are as follows:
Revenue: $56.3 billion (up 33% year over year, above market expectations)
Earnings per share (EPS): $10.44 (market expectation $6.65, 57% above)
Operating income: $22.9 billion, operating margin 41% (down 90 basis points year over year)
Net profit: $26.8 billion (including $8.03 billion in tax benefits)
2026 capital expenditure guidance: $125 billion minimum, $145 billion maximum
Meta also announced its Q2 2026 revenue guidance of $58 billion to $61 billion (midpoint around $59.5 billion), implying roughly 25% year-over-year growth, lower than Q1’s 33%.
Ad Engine Data: Impressions +19%, Average Price +12%, Monthly Active Users Near 4 Billion
Meta Q1 2026 advertising business metrics: global ad impressions increased 19% year over year, while the average price per ad rose 12% year over year—both metrics moved higher at the same time. Monthly active users across all Meta-owned applications are nearly 4 billion, and user engagement hit the highest level in years.
During the earnings call, Meta management said that AI-driven recommendations and targeting algorithms improve ad relevance; management views this as a key factor behind ads and prices rising in tandem. The cash flow from the core advertising business currently offsets Reality Labs (the metaverse division)’s ongoing annual losses.
Valuation Snapshot and the Next Earnings Date on July 29
Meta’s current trailing price-to-earnings ratio is about 22.99x, with trailing earnings per share of $27.49; based on expected 2027 earnings, the P/E is about 17 to 18x, below the current average P/E of the S&P 500. During the earnings call, Meta management said that the $145 billion in capital expenditures is driven by demand for AI infrastructure—used to expand data centers and AI computing infrastructure.
Current technical readings: the 14-day RSI is in the neutral range of 40 to 50; the MACD is fluctuating near the zero line; the 50-day moving average is located at $615 to $625, below the spot price; the 200-day moving average band reads between $633 and $655, with the current stock price below that range. The market’s next confirmation point will be Meta’s Q2 earnings on July 29, 2026, when investors will assess the further impact of capital expenditures on profit margins and whether the advertising business can maintain growth above the 25% guidance pace.
FAQ
Why was Meta’s Q1 ad business able to deliver double-digit growth in both impressions and pricing at the same time?
Meta management said on the earnings call that AI-driven recommendation algorithms improve ad relevance, enabling the platform to simultaneously increase ad impressions (+19%) and raise the average selling price (+12%). Management said this reflects the platform’s real pricing power for ad inventory.
Why did the stock price fall after earnings when CapEx guidance was raised?
Meta raised 2026 capital expenditures from $125 billion to as high as $145 billion, nearly double the 2025 spending level. This sparked market concerns that depreciation costs would erode future profit margins, leading to the stock falling 7% to 10% in a single day after the earnings release.
When will Meta’s Q2 2026 earnings be released, and what is the guidance growth rate?
Meta plans to release Q2 2026 earnings on July 29, 2026; Q2 2026 revenue guidance is $58 billion to $61 billion (midpoint about $59.5 billion), implying roughly 25% year-over-year growth, below the 33% achieved in Q1.
