Meta Platforms (META) saw its stock price decline despite reporting better-than-expected results for the first quarter of 2026. The tech giant announced a revenue of $56.31 billion, a 33% increase year-over-year, surpassing analysts' estimates of $55.45 billion. Earnings per share (EPS) also exceeded forecasts, coming in at $10.44 compared to the expected $6.65.
Despite the robust financial performance, Meta's daily active people (DAP) showed a slight decline quarter-over-quarter. The company reported 3.56 billion DAP for March 2026, a 4% increase year-over-year, but below Wall Street projections of 3.62 billion. This slowdown was attributed to internet disruptions in Iran and restrictions on WhatsApp access in Russia. Iran has been experiencing significant internet disruptions, with a near-total shutdown lasting over 60 days, impacting businesses and daily life.
Looking ahead, Meta anticipates second-quarter 2026 revenue to be in the range of $58 billion to $61 billion. The company also raised its full-year guidance for capital expenditures to between $125 billion and $145 billion, reflecting increased investments in AI infrastructure and data centers. This substantial increase in capital expenditure, doubling from approximately $72 billion in 2025, has also contributed to investor concerns.
Meta's Q1 results highlight a mixed bag of strong financial performance and challenges in user growth. While the company's advertising business remains healthy, the impact of geopolitical events and investments in AI will be closely watched by investors. The company's focus on AI is expected to drive future growth, with CEO Mark Zuckerberg stating they are on track to deliver personal superintelligence to billions.
