Key Takeaways
- META shares declined approximately 8% during after-hours sessions following quarterly results
- First quarter earnings delivered $10.44 per share against $56.3 billion in revenue, surpassing analyst projections
- Company increased 2026 capital spending outlook to $125B–$145B range, elevated from prior $115B–$135B estimate citing component price increases
- Platform daily active people climbed 4% annually to reach 3.56 billion users
- Organization recently disclosed workforce reduction affecting 8,000 positions, representing roughly 10% of total employees
Meta Platforms delivered impressive first-quarter results, yet market participants remained preoccupied with future projections — particularly the substantial financial commitment required.
First quarter profitability registered at $10.44 per share, significantly exceeding analyst consensus of $8.15. Total revenue reached $56.3 billion, surpassing the projected $55.5 billion. However, when accounting for an $8 billion one-time tax advantage, adjusted earnings per share falls to $7.31.
The positive performance proved insufficient. META shares tumbled roughly 8% in extended trading following the announcement of increased 2026 capital investment projections.
The social media giant now projects 2026 capital expenditures between $125 billion and $145 billion, representing an upward revision from the previously stated $115 billion to $135 billion range. Management attributed this adjustment to elevated component costs and expanded data center infrastructure requirements.
Total operating expenses for 2026 are anticipated to hold steady within the $162 billion to $169 billion corridor.
For perspective, Meta’s 2025 full-year operating costs totaled $117.7 billion, while capital investments hit $72.2 billion — marking a substantial increase from previous periods.
Second quarter revenue projections were established between $58 billion and $61 billion.
Big Tech AI Infrastructure Investments Create Market Uncertainty
Meta’s earnings announcement coincided with quarterly reports from Alphabet, Microsoft, and Amazon. However, those three technology leaders demonstrated more tangible returns from their AI-related expenditures, resulting in stronger investor reception.
The aggregate AI infrastructure investment from these four industry leaders is projected to exceed $650 billion during the current year. This substantial figure has generated market apprehension, with financial analysts questioning the timeline and certainty of return realization.
Forrester’s Lee Sustar highlighted persistent concerns “about the sustainability of the AI boom,” emphasizing elevated expenditures coupled with limited demonstrable returns thus far.
Platform Engagement Increases Annually While Quarterly Growth Moderates
Regarding user metrics, Meta’s daily active people count achieved 3.56 billion at March conclusion, reflecting 4% annual growth.
This represented a marginal decline from the 3.58 billion recorded in Q4, which the company attributed to internet connectivity challenges in Iran and WhatsApp access limitations within Russia.
Advertisement impressions throughout Meta’s application suite increased 19% year-over-year during Q1, while average advertising rates advanced 12%. Both metrics showed acceleration relative to fourth quarter performance.
Employee count stood at 77,986 at March 31.
The previous week, Meta disclosed plans to eliminate 8,000 positions — approximately 10% of total headcount — alongside canceling 6,000 unfilled openings. Company leadership characterized these reductions as part of ongoing efficiency optimization efforts necessary to “offset the other investments we’re making.”
Meta concluded standard trading on April 29 at $669.12, subsequently declining to approximately $613 during pre-market activity following the earnings disclosure.
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