10-QPeriod: Q1 FY2026

Meta Platforms, Inc. Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 30, 2026For Securities:META

Summary

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 billion, 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 billion, 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.

Financial Highlights

47 data points
Beta

Revenue

$56.31B

81.9% Gross Margin

Net Income

$26.77B

47.5% Net Margin

EPS (Diluted)

$10.44

Total Assets

$395.25B

Cash & Equivalents

$23.43B

Free Cash Flow

$13.23B

Financial Statements
Beta
Revenue$56.31B
Cost of Revenue$10.22B
Gross Profit$46.09B
R&D Expenses$17.70B
Operating Expenses$33.44B
Operating Income$22.87B
Net Income$26.77B
EPS (Basic)$10.57
EPS (Diluted)$10.44
Shares Outstanding (Basic)2.53B
Shares Outstanding (Diluted)2.56B

Key Highlights

  • 1Total revenue increased 33% year-over-year to $56.31 billion, driven by a 33% increase in advertising revenue.
  • 2Income from operations rose 30% year-over-year to $22.87 billion, reflecting strong revenue growth and managed expense increases.
  • 3Family of Apps (FoA) revenue grew 33% to $55.91 billion, with advertising revenue up 33% due to increased ad impressions and pricing.
  • 4Reality Labs (RL) segment revenue decreased 2% to $402 million, with an operating loss of $4.03 billion.
  • 5Diluted earnings per share (EPS) was $10.44.
  • 6Cash, cash equivalents, and marketable securities stood at $81.18 billion as of March 31, 2026.
  • 7Capital expenditures for the quarter were $19.84 billion, largely for infrastructure and AI initiatives.

Frequently Asked Questions

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%).

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.

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.

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%.