Meta posted its best quarter ever. The stock dropped 9 per cent.

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April 30, 2026, 6:58 PM

• •Meta's Q1 2026 revenue reached $56.31 billion, a 33% increase, with net income at $26.8 billion, a 61% increase.
• •Daily active people declined 5% sequentially to 3.56 billion, attributed to the Iran war and a WhatsApp ban in Russia.
• •Meta is increasing capital expenditure guidance to $125-145 billion while cutting 8,000 jobs.
• •The company is heavily investing in AI infrastructure, particularly Muse Spark, and is integrating AI across its apps.

Meta reported a record-breaking Q1 2026 with substantial revenue and net income growth, but a portion of the profit came from a one-time tax benefit. The company experienced its first-ever decline in daily active users across its family of apps, attributed to geopolitical events. Despite strong advertising performance and significant investment in AI infrastructure, Meta's stock fell as it increased capital expenditure guidance and announced layoffs. Investors are questioning whether the substantial AI investments will yield returns before the advertising business slows down.

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