Key Highlights
- META shares plummeted approximately 8% during after-hours trading following quarterly results
- First quarter earnings per share reached $10.44 with revenue totaling $56.3 billion, surpassing analyst projections
- Capital expenditure guidance for 2026 increased to a range of $125B–$145B from the prior $115B–$135B estimate, driven by elevated component pricing
- Daily active people across Meta’s family of apps increased 4% annually to reach 3.56 billion
- The company recently disclosed workforce reductions of 8,000 positions, representing approximately 10% of total headcount
Meta Platforms delivered impressive first-quarter performance, yet investors remained focused on future spending commitments — particularly the substantial price associated with them.
The social media giant’s first-quarter earnings per share reached $10.44, significantly exceeding analyst expectations of $8.15. Revenue totaled $56.3 billion, surpassing the consensus forecast of $55.5 billion. However, excluding an $8 billion tax benefit recorded during the period, adjusted EPS falls to $7.31.
Despite the positive results, META shares declined approximately 8% in extended trading following the company’s announcement of an elevated capital expenditure outlook for 2026.
The tech giant now projects 2026 capital spending will range from $125 billion to $145 billion, representing an increase from its earlier guidance of $115 billion to $135 billion. Management attributed the upward revision to rising prices for components and expanded data center infrastructure requirements.
Full-year operating expenses for 2026 are anticipated to hold steady within a $162 billion to $169 billion range.
By comparison, Meta’s full-year 2025 expenses totaled $117.7 billion, including capital expenditures of $72.2 billion — marking a substantial increase from previous fiscal years.
Second quarter revenue guidance was established at $58 billion to $61 billion.
Big Tech’s AI Investment Wave Creates Market Uncertainty
Meta wasn’t the only major technology company releasing results this week. Alphabet, Microsoft, and Amazon also reported earnings during a similar timeframe. However, those three firms demonstrated more tangible returns from their artificial intelligence investments, which helped their stocks weather investor scrutiny more effectively.
The aggregate AI expenditures from these four technology powerhouses are projected to exceed $650 billion this year. This staggering figure has generated market unease, with financial analysts questioning the timeline and likelihood of adequate returns justifying such massive outlays.
Forrester analyst Lee Sustar highlighted persistent concerns “about the sustainability of the AI boom,” emphasizing elevated expenses and thus far modest tangible benefits.
User Metrics Show Growth, Though Sequential Figures Dip Slightly
Regarding user engagement, Meta’s daily active people metric climbed to 3.56 billion by the end of March, representing a 4% year-over-year increase.
This figure reflected a modest sequential decline from 3.58 billion during the fourth quarter, which Meta explained was due to internet connectivity issues in Iran and WhatsApp access restrictions imposed in Russia.
Advertisement impressions throughout Meta’s application ecosystem jumped 19% year-over-year during the first quarter, while average pricing per advertisement climbed 12%. Both metrics demonstrated acceleration relative to fourth quarter growth trajectories.
Employee headcount reached 77,986 as of March 31.
Last week, Meta disclosed plans to eliminate 8,000 employee positions — representing roughly 10% of its workforce — alongside the removal of 6,000 unfilled job openings. Company leadership characterized the reductions as part of ongoing efficiency initiatives and necessary to “offset the other investments we’re making.”
Meta concluded regular trading on April 29 at $669.12, before declining to approximately $613 during pre-market activity following the earnings announcement.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
