Meta's first-quarter 2026 revenue grew 33% year over year to more than $56 billion, but stock fell as capital expenditure outlook rose to $125 billion to $145 billion for full-year 2026.

Meta reported first-quarter 2026 revenue of more than $56 billion, a 33% year-over-year increase, with ad impressions up 19% and average ad price up 12%. The company guided for Q2 2026 revenue of $58 billion to $61 billion, implying about 25% year-over-year growth.

Meta raised its full-year 2026 capital expenditure outlook (including principal payments on finance leases) to $125 billion to $145 billion, up from $115 billion to $135 billion, citing higher component pricing and additional data center costs. First-quarter capital expenditures alone were $19.8 billion, up about 45% from $13.7 billion a year earlier.

The spending increase reflects Meta's assessment that it has 'continued to underestimate our compute needs,' according to a company executive on the earnings call. CEO Mark Zuckerberg highlighted efficiency efforts including custom silicon developed with Broadcom and AMD chips alongside Nvidia systems as part of the Meta Compute initiative.