Overview
- Meta reported a strong Q1 on April 29 with $56.31 billion in revenue and EPS of $10.44, driven by a 19% rise in ad impressions and a 12% increase in price per ad.
- Management raised full‑year 2026 capital spending to $125–$145 billion to build AI data centers and related compute capacity, nearly doubling 2025 capex.
- To finance and trim costs for the buildout, Meta said it will cut roughly 8,000 jobs, cancel about 6,000 open roles, and focus on custom silicon from Broadcom plus AMD chips to reduce dependence on Nvidia.
- Markets reacted with caution after the capex boost, with shares sliding about 7% in after‑hours trading and some analysts modestly trimming targets even as bullish multi‑year scenarios remain.
- Reality Labs continues to be a large loss maker and regulatory and litigation risks persist, so the key near‑term questions are the pace and cost of the data‑center ramp and whether the compute investment lifts ad pricing before investor patience runs thin.