01—Abstract
Summary
Summary of the 10-Q filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
Meta Platforms, Inc. reported strong financial performance for the first quarter of 2026, driven by substantial revenue growth and efficient cost management.
Total revenue surged by 33% year-over-year to $56.31 billiona, primarily fueled by a 33% increase in advertising revenue, supported by a 19% rise in ad impressions and a 12% increase in average ad price. This robust top-line growth, combined with controlled expense increases, led to a significant 30% increase in income from operations to $22.87 billion. The company continues to invest heavily in its core 'Family of Apps' segment, which saw a 33% revenue increase and a 24% rise in operating income.
Simultaneously, the Reality Labs segment, while still operating at a loss of $4.03 billionb, showed a slight improvement in operational loss (4% reduction), indicating progress in managing its substantial long-term investments. Meta Platforms ended the quarter with a strong liquidity position, holding $81.18 billion in cash, cash equivalents, and marketable securities, and generated substantial operating cash flow, underscoring its financial stability and capacity for continued investment and shareholder returns.
02—Key points
Key Highlights
- Total revenue increased 33% year-over-year to $56.31 billion, driven by a 33% increase in advertising revenue.
- Income from operations rose 30% year-over-year to $22.87 billion, reflecting strong revenue growth and managed expense increases.
- Family of Apps (FoA) revenue grew 33% to $55.91 billion, with advertising revenue up 33% due to increased ad impressions and pricing.
- Reality Labs (RL) segment revenue decreased 2% to $402 million, with an operating loss of $4.03 billion.
- Diluted earnings per share (EPS) was $10.44.
- Cash, cash equivalents, and marketable securities stood at $81.18 billion as of March 31, 2026.
- Capital expenditures for the quarter were $19.84 billion, largely for infrastructure and AI initiatives.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Meta Platforms, Inc. kept $0.48.
- Revenue$56.31B100.0%
- Cost of revenue−$10.22B18.1%
- Gross profit$46.09B81.9%
- Operating costs−$23.22B41.2%
- Operating income$22.87B40.6%
- Interest, other & tax$3.90B6.9%
- Net income$26.77B47.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 30, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $56.31B$42.31B | +33.1% |
| Cost of Revenue | $10.22B$7.57B | +34.9% |
| Gross Profit | $46.09B$34.74B | +32.7% |
| R&D Expenses | $17.70B$12.15B | +45.7% |
| Operating Expenses | $33.44B$24.76B | +35.1% |
| Operating Income | $22.87B$17.55B | +30.3% |
| Net Income | $26.77B$16.64B | +60.9% |
| EPS (Basic) | $10.57$6.59 | +60.4% |
| EPS (Diluted) | $10.44$6.43 | +62.4% |
| Shares Outstanding (Basic) | 2.53B2.53B | +0.3% |
| Shares Outstanding (Diluted) | 2.56B2.59B | −1.0% |
05—Questions
Frequently Asked Questions
What is the primary driver of Meta Platforms' revenue growth in Q1 2026?
The primary driver of Meta Platforms' revenue growth in Q1 2026 was its advertising business, which saw a 33% increase year-over-year. This growth was supported by both an increase in the number of ad impressions delivered (up 19%) and a rise in the average price per ad (up 12%).
How is the Reality Labs segment performing, and what is its financial impact?
The Reality Labs segment continues to be an area of significant investment and is currently operating at a loss. For Q1 2026, Reality Labs reported an operating loss of $4.03 billion, a slight improvement of 4% compared to the same period in the prior year. While revenue for the segment decreased by 2% to $402 million, management expects these losses to remain similar for the full year 2026, indicating a continued focus on long-term development.
What is Meta Platforms' current liquidity position?
Meta Platforms maintains a strong liquidity position. As of March 31, 2026, the company held $81.18 billion in cash, cash equivalents, and marketable securities. This robust balance, coupled with strong operating cash flow generation, provides significant financial flexibility for investments and operations.
How did Meta's tax provision and effective tax rate change in this quarter?
Meta Platforms reported a provision for income taxes of $(5.021) billion, resulting in a negative effective tax rate of (23)% for Q1 2026. This was primarily due to an $8.03 billion discrete income tax benefit recognized related to U.S. Corporate Alternative Minimum Tax (CAMT) transitional relief. Excluding this benefit, the effective tax rate would have been 14%.
06—Continue