Meta Platforms, Inc. · META · FY2026 Q1 · Calendar Q2 2026

Meta Q1 2026: Revenue Surges 33% as AI Products Launch, Stock Falls 8.6%

Meta's Q1 2026 results demonstrated accelerating AI-driven growth: 33% YoY revenue to $56.3B, a 55.8% EPS beat, and a wave of product launches including the Muse Spark model and expanded AI glasses. Yet the market reacted sharply negative, with shares falling 8.6% against a rising benchmark, as investors focused on ballooning capital intensity — full-year CapEx raised to $125-$145B and $107B in contractual compute commitments. The central tension is whether Meta's massive infrastructure investment will generate commensurate returns, or whether it represents over-investment ahead of proven monetization.

Reported After market closeNASDAQCommunication Services $1507.49B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $10.44 Consensus $6.70
EPS surprise +55.8% Reported versus consensus
Reported revenue $56.31B Consensus $55.56B
Revenue surprise +1.4% Reported versus consensus

Market reaction

event-close to next-session close
Stock move -8.6% Event window
SPY move +1.0% Same window
Abnormal move -9.5% Stock minus SPY
Volume 3.7× Versus trailing sessions
Subsequent drift +3.4% Up to 20 sessions
METASPY benchmark

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Why did META fall 8.6% after beating EPS estimates in FY2026 Q1?What changed in META's guidance and outlook in FY2026 Q1?Give me the bull and bear case for META after FY2026 Q1 earnings.

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Transcript intelligence

What changed

Revenue grew 33% YoY to $56.3B, beating the $55.6B estimate by 1.4%. EPS of $10.44 vs. $6.70 estimate marked a 55.8% surprise, aided by a non-recurring $8B tax benefit. Meta launched Muse Spark, its first Muse model, and reported tenfold growth in weekly business-AI conversations to over 10 million. AI glasses daily active users tripled year-over-year. Full-year CapEx guidance was raised to $125-$145B from the prior $115-$135B range, with $107B in contractual compute commitments. Q2 2026 revenue guidance was set at $58-$61B. The Dreamer acquisition was announced. Shares fell 8.6% the session after earnings on 3.7x baseline volume before drifting +3.4% in subsequent sessions.

Guidance delta

Q4 2025 guided Q1 2026 revenue to $53.5-$56.5B and full-year CapEx to $115-$135B. Actual Q1 revenue of $56.3B landed near the top of that range. For Q2 2026, Meta guided revenue to $58-$61B. Full-year CapEx was raised by $10B at both ends to $125-$145B. Guidance sentiment shifted from 'maintained' in Q4 2025 to 'not_provided' this quarter.

Key takeaways

  • Revenue grew 33% YoY to $56.3B, beating the $55.6B consensus by 1.4%, driven by higher ad prices and strong impression growth.
  • EPS of $10.44 exceeded the $6.70 estimate by 55.8%, though a non-recurring $8B tax benefit contributed significantly to the beat.
  • Meta launched Muse Spark, its first Muse model, and reported tenfold growth in weekly business-AI conversations to over 10 million.
  • AI glasses daily active users tripled year-over-year; new Ray-Ban MetaOptics and Oakley styles expanded the hardware lineup.
  • Full-year CapEx guidance was raised to $125-$145B with $107B in contractual compute commitments, up from the prior $115-$135B range.
  • Shares fell 8.6% the session after earnings on 3.7x baseline volume, before drifting +3.4% in subsequent sessions.

Management priorities

  • Scale next-generation Muse models and integrate them across personal and business AI agents.
  • Expand AI glasses portfolio with new styles and improved hardware capabilities including battery and video resolution.
  • Grow ad placements on Threads and WhatsApp Status globally.
  • Deploy Meta Ads AI Connectors in open beta for advertisers.
  • Expand data-center footprint and secure multiyear cloud deals through 2027.

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Earnings History

Estimate Beat Miss Match
META EPS earnings history estimate and actual scatter chart 10 reported fiscal quarters and 2 future estimate-only quarters. Q2 '24 estimate $4.73 Q2 '24 actual $5.16, beat Q3 '24 estimate $5.25 Q3 '24 actual $6.03, beat Q2 '25 estimate $5.88 Q2 '25 actual $7.14, beat Q3 '25 estimate $6.72 Q3 '25 actual $7.25, beat Q4 '25 estimate $8.19 Q4 '25 actual $8.88, beat Q1 '26 estimate $6.70 Q1 '26 actual $10.44, beat Q2 '26 estimate $7.19 Q2 '26 actual $6.18, miss Q3 '26 estimate $6.54 Q3 '26 actual $7.40, beat Q4 '26 estimate $8.48 Q1 '27 estimate $8.28
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Analyst Consensus ?

ConsensusBuy68 ratings
Bullish5580.9%
Neutral1116.2%
Bearish22.9%

Analyst 52W Price Targets

$635.45Current
$105Low
$562.35Average
$1,000High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 26, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Wells Fargo Overweight OverweightMaintainOct 22, 2026
Wedbush Neutral NeutralMaintainOct 22, 2026
UBS Buy BuyMaintainOct 22, 2026
TD Cowen Buy BuyMaintainOct 22, 2026
Susquehanna Positive PositiveMaintainOct 22, 2026
Show 63 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $635.44. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Mizuho SecuritiesLloyd Walmsley$950$646.21 +49.5%Oct 22, 2026
KeyBancJustin Patterson$905$652.36 +42.4%Oct 22, 2026
UBSAnalyst unavailable$920$653.35 +44.8%Oct 22, 2026
ScotiabankNat Schindler$650$697.52 +2.3%Oct 22, 2026
MonnessBrian White$875$697.52 +37.7%Oct 22, 2026
See 255 more

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Company context

Snapshot as of publication

Meta Platforms Inc., which operated as Facebook, Inc. until its October 2021 rebranding, is a technology enterprise focused on developing innovative products that empower people globally to connect and share with their friends and family. These services are accessible across a variety of digital platforms, including mobile phones, personal computers, virtual reality devices, and wearables. The company's activities are organized into two principal divisions: the Family of Apps and Reality Labs. The Family of Apps segment encompasses well-known platforms such as: Facebook, where users can share content, participate in discussions, explore new interests, and build connections.…

Historical context

All META earnings
+0.5%FY2026 Q3 · Calendar Q4 2026-8.0%FY2026 Q2 · Calendar Q3 2026+10.4%FY2025 Q4 · Calendar Q1 2026

Communication Services peers this season

Latest reports in the same sector
CompanyQuarterEPS surpriseMarket moveHeadline
VZ Verizon Communications Inc. FY2026 Q3 · Calendar Q4 2026 — -2.8% Verizon’s demand rebound broadens as AI Connect scales
RCI Rogers Communications Inc. FY2026 Q3 · Calendar Q4 2026 +9.5% -2.4% Rogers Reaffirms 2026 Guidance as Capex Falls and MLSE Monetization Advances
OMC Omnicom Group Inc. FY2026 Q3 · Calendar Q4 2026 +2.2% +2.6% Omnicom pairs resilient demand with AI and integration progress
SPOT Spotify Technology S.A. FY2026 Q3 · Calendar Q4 2026 -11.6% +11.1% Spotify: resilient Q3 demand, with AI and audiobooks central to growth
CMCSA Comcast Corporation FY2026 Q3 · Calendar Q4 2026 +8.5% +3.4% Comcast balances wireless and Peacock gains against Q4 costs

Latest beats and misses

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-07-28T05:15:21.584194+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-28T05:15:21.581144+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-07-28. For educational purposes only; not investment advice.