Meta Q1 Revenue Jumps 33% to $56.31B, CapEx Guidance Raised to $125–145B
Meta Platforms Q1 revenue rose 33% to $56.31B with EPS 7.2% above estimates, as robust ad sales and AI-driven monetization propelled performance. The company raised its 2026 CapEx outlook to $125–145B—triggering a 6% stock pullback—and disclosed multi-billion-dollar CoreWeave commitments that form part of a $95B AI infrastructure backlog.
1. Q1 2026 Earnings Performance
Meta Platforms reported Q1 revenue of $56.31 billion, a 33% year-over-year increase, and delivered earnings per share 7.2% above consensus estimates. Growth was driven by strong ad revenue and new AI-driven features including Muse Spark's Shopping Mode, boosting monetization.
2. Elevated Capital Expenditure Guidance
Management raised the full-year 2026 capital expenditure guidance to a range of $125 billion to $145 billion, reflecting investments in data centers and AI infrastructure. This revised outlook prompted a 6% decline in Meta's share price on investor concerns about near-term cash flow.
3. AI Infrastructure Commitments
Meta has entered into multi-billion-dollar agreements with CoreWeave, contributing to a sector backlog of over $95 billion in AI infrastructure projects. These commitments aim to secure data center capacity for generative AI workloads and support long-term platform capabilities.
4. Regulatory and Strategic Risks
Despite robust financial results, Meta faces heightened regulatory scrutiny over data privacy and competition, with potential for fines or operational restrictions. Investors are weighing these risks against the company's strong margins and technological advantage in AI-driven advertising.