Meta Platforms announced its financial results for the first quarter ended March 31, 2026.

Revenue reached $56.3 billion, a 33% increase year-over-year, or 29% growth on a constant currency basis. Operating profit was $22.9 billion, up 30% compared to the prior year, resulting in an operating margin of 41%. Net income amounted to $26.8 billion, a significant increase of 61%. Diluted earnings per share were $10.44, rising 62% year-over-year.

The net income figure includes an income tax benefit of $8.03 billion related to the US Treasury Department's treatment of capitalized research and development expenditures for corporate minimum tax. Excluding this benefit, the effective tax rate would have been 37 percentage points higher, and earnings per share would have been lower by $3.13.

Segment performance for the quarter was as follows: The Family of Apps (FoA) segment reported revenue of $55.9 billion, compared to $41.9 billion in the first quarter of 2025, representing 33% growth. Its operating profit was $26.9 billion, up from $21.8 billion a year ago. The Reality Labs (RL) segment generated revenue of $400 million, a slight decrease of 2% from the $400 million reported in the prior-year period. The segment's operating loss was $4.0 billion, an improvement from a loss of $4.2 billion in the first quarter of 2025. Consolidated revenue was $56.3 billion, a 33% increase from $42.3 billion last year. Total operating profit was $22.9 billion, up from $17.6 billion.

Key operational metrics showed: Family Daily Active People (DAP) averaged 3.56 billion for March 2026, an increase of 4% year-over-year. The figure saw a slight sequential decline, primarily due to internet disruptions in Iran and restrictions on WhatsApp access in Russia. Ad impressions increased by 19% compared to the prior year. The average price per ad increased by 12% year-over-year.

Cash flow and capital expenditure details included: Cash flow from operations was $32.2 billion. Free cash flow was $12.4 billion. Capital expenditures, including principal payments on finance leases, totaled $19.8 billion. The company held $81.2 billion in cash, cash equivalents, and marketable securities as of March 31, 2026. The headcount was 77,986, a 1% increase from the previous year.

Meta founder and CEO Mark Zuckerberg commented, "We had a landmark quarter with strong momentum across our apps and the release of the first model from the Meta super-intelligence lab. We are on track to bring personal super-intelligence to billions of people."

The company provided the following guidance for the second quarter and full year 2026: Second-quarter total revenue is projected to be in the range of $58 billion to $61 billion. Foreign exchange rates are expected to provide approximately a 2 percentage point tailwind to year-over-year growth. Total expenses for full-year 2026 are forecast to be between $162 billion and $169 billion, unchanged from prior guidance. Full-year 2026 capital expenditures, including principal payments on finance leases, are now anticipated to be between $125 billion and $145 billion. This is an increase from the previous range of $115 billion to $135 billion, reflecting higher component pricing and additional data center costs. Excluding the discrete tax item, the effective tax rate for the remainder of 2026 is expected to be between 13% and 16%.

Other financial information: Dividends and dividend equivalents paid in the first quarter totaled $1.35 billion. The company continues to monitor legal and regulatory matters in the EU and US, including litigation related to teens that could potentially have a material impact on its business.