Actual results may differ materially as a result of various factors, including those set forth in today's earnings press release and in our annual report on Form 10-K filed with the SEC. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release. The earnings press release and an accompanying investor presentation are available on our website at investor.atmeta.com. The trend over the last few years seems clear that we are seeing an increasing return on the amount that we can improve engagement for people and value for advertisers.
Of course, we will continue pushing to increase our efficiency as well, but overall, I think the future is about building many more higher quality things than we've ever built before. Absent these impacts, growth in family daily active people would have been positive quarter-over-quarter. Q1 total family of apps revenue was $55.9 billion, up 33% year-over-year. Q1 family of apps ad revenue was $55 billion, up 33%, or 29% on a constant currency basis.
Impression growth was healthy across all regions, driven primarily by growth in engagement and users, as well as ad load optimizations. This was partially offset by strong impression growth, including from lower monetizing regions. Family of apps other revenue was $885 million, up 74%, driven primarily by WhatsApp paid messaging and subscriptions revenue. Within our Reality Labs segment, Q1 revenue was $402 million, down 2% year-over-year due to lower Quest headset sales, which were partially offset by continued strong growth in AI glasses revenue.
| Metric | Period | Current guidance |
|---|---|---|
| Infrastructure capital expenditures | FY2026 | Forecast increased, most of the increase due to higher component costs (particularly memory pricing); rolling out 1GW+ of custom Broadcom silicon plus significant AMD chips to complement new NVIDIA systems; no revised dollar figure stated in transcript |
| Total revenue | Q2 2026 | A Q2 guide was provided embedding a range of macro outcomes plus ongoing engagement and ad-performance work (specific figures not stated in transcript) |
| Full-year revenue growth | FY2026 | Expected to be below the Q1 2026 growth pace |
| Reality Labs | FY2026 | Focused on making the VR business sustainable while investing more in AI and glasses; remaining the biggest VR investor |
| Business AI monetization | Future | Expect to work toward a longer-term monetization model as progress is made; personal-agent monetization could include commission structures or a premium offering |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +33% | $56.3B (+29% constant currency); strong ad performance, better macro versus Q1 2025, and currency tailwinds. |
| Family of Apps ad revenue | +33% | $55B (+29% constant currency), driven by ad-performance improvements, macro, and FX. |
| Ad impressions | +19% | Healthy across all regions, driven by engagement and user growth plus ad-load optimizations. |
| Average price per ad | +12% | Broad-based; ad-performance improvements, better macro versus Q1 2025, and currency tailwinds in international regions, partially offset by strong impression growth from lower-monetizing regions. |
| Family of Apps other revenue | +74% | $885M; WhatsApp paid messaging and subscriptions revenue. |
| Reality Labs revenue | -2% | $402M; lower Quest headset sales partially offset by continued strong AI-glasses revenue growth. |
| Total expenses | +35% | $33.4B; higher infrastructure costs (depreciation, data-center operating costs, third-party cloud) and employee compensation from AI hires. |
| Operating income | $22.9B (41% margin) | Strong revenue growth against 35% expense growth. |
| Net income / EPS | $26.8B / $10.44 | Boosted by an $8.03B tax benefit (tax rate -23%) partially relieving the Q3 2025 charge; underlying net income $18.7B / $7.31 EPS at a normalized 14% rate. |
| Capital expenditures | $19.8B | Investments in servers, data centers and network infrastructure. |
| Free cash flow | $12.4B | Ended with $81.2B cash & marketable securities and $58.7B debt. |
| Headcount | -1% QoQ | Over 77,900 employees; headcount optimization in certain functions partly offset by hiring in monetization and infrastructure. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Muse family / MSL first model | MSL rebuilding AI program | Released the Muse family and first model Muse Spark plus upgraded Meta AI; more advanced models already in training; leads in visual understanding, health, shopping, social content, local, and game creation. | — |
| Personal and business agents | Personal superintelligence vision | Building a personal agent and a business agent forming an ecosystem; early business-AI test conversations up 10x since the start of the year (over 10 million weekly). | — |
| Recommendations + LLMs / first-principles understanding | Statistical engagement patterns | Using Muse/upcoming models to develop first-principles understanding of what users care about; doubled Instagram training interaction-sequence length in Q1; validating LLM-based recommender architectures before scaling. | — |
| Meta Compute and efficiency / custom silicon | Meta Compute announced (Q4) | Rolling out 1GW+ of custom Broadcom silicon plus significant AMD chips alongside new NVIDIA systems; efficiency of building compute framed as a strategic advantage; expects cost per gigawatt to fall. | — |
| Infrastructure CapEx / memory pricing | Prior 2026 forecast | Raised the 2026 infrastructure CapEx forecast, mostly on higher component costs (particularly memory pricing). | — |
| Adaptive/LLM-scale ads inference | Lightweight runtime models | Adaptive ranking model (trillion-parameter, LLM-scale) rolled out from 2H2025, co-designed with silicon for sub-second latency; routes to more compute-intensive inference when conversion probability is higher; expanded to offsite conversions (+1.6%). | — |
| AI glasses | Sales tripled in 2025 | Daily users tripled YoY; released Ray-Ban Meta Optics for all-day wear; strong interest in Ray-Ban Meta Display with Neural Band; more brand partnerships/styles later this year. | — |
| AI transforming work / company structure | AI-native tooling (Q4) | Examples of one or two people building in a week what once took dozens over months; flattening teams, rewarding outsized-impact individuals; a ~10% RIF referenced by an analyst. | — |