Meta Platforms delivered Q1 results with revenue of $56.3 billion, up 33% year over year, as online ads continued to grow. Online ad revenue is closing the gap with Google, while Meta is growing faster than Alphabet. Net income rose 61% year over year despite higher-than-expected AI capital expenditures. Daily active users showed a slight sequential dip, but remained up 4% year over year, with declines attributed to internet disruptions in Iran and restrictions on WhatsApp access in Russia. Q2 2026 guidance sets a $59.5 billion midpoint, implying 25.2% year-over-year revenue growth. The company has sustained about 19.9% annualized revenue growth over three years, supported by AI and market share gains.
"Revenue reached $56.3 billion, representing a 33% year-over-year increase as online ads continue to grow. That's compared to $77.3 billion in Google ad revenue. Meta Platforms is closing the online advertising gap and is growing at a faster rate than Alphabet."
"Higher-than-expected AI capital expenditures ruffled some feathers, but Meta Platforms still managed to grow its net income by 61% year over year. Judging the company harshly for rising AI capital expenditures seems a bit unfair, given that its profits and margins are heading in the right direction."
"Investors were also concerned about a slight sequential dip in daily active users, but that figure was still up by 4% year over year. Meta Platforms cited internet disruptions in Iran and a restriction on WhatsApp access in Russia when explaining the slight sequential decline."
"Meta Platforms set $59.5 billion as the Q2 2026 midpoint in guidance, which implies 25.2% year-over-year revenue growth. That's a higher growth rate than Alphabet's typical quarter, and it shows that the company is still gaining market share in online advertising."
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