Meta Q1 Revenue Beats Estimates, Shares Fall on AI Capex Raise

Meta Platforms reported stronger-than-expected first-quarter revenue on Wednesday, beating analyst estimates as its advertising business powered ahead, but shares dropped about 5 percent in extended trading after the company raised its 2026 capital expenditure forecast amid heavy investments in artificial intelligence.

The social media company, which operates Facebook, Instagram, WhatsApp and Threads, posted revenue of $56.31 billion for the quarter ended March 31, surpassing the LSEG-compiled average estimate of $55.45 billion. It guided for second-quarter revenue of $58 billion to $61 billion, aligning closely with expectations around $59.5 billion. Family daily active people, a key metric tracking unique users across its apps, increased 4 percent year over year to 3.56 billion.

The results underscore Meta's aggressive push into AI, with Chief Executive Mark Zuckerberg reshaping the workforce to prioritize the technology. Weeks earlier, reports emerged of plans for sweeping layoffs to integrate AI into operations and cut costs. The company has ramped up spending on AI infrastructure, including high compensation for staff at its Meta Superintelligence Labs, which released its...