Meta reports record $56.3B revenue but daily users decline for first time as capex rises to $145B and 8,000 jobs are cut

"Meta posted the most profitable quarter in its history with a revenue of $56.31 billion, a 33% increase, and net income of $26.8 billion, up 61% year over year."

"For the first time since reporting its family of apps, Meta saw a decline in daily active users, which fell more than 5% sequentially to 3.56 billion."

"The market reacted negatively to Meta's record quarter, concluding that despite strong financial performance, the decline in user numbers and increased capital expenditure were concerning."

"Of the reported net income, $8.03 billion was attributed to a one-time tax benefit, raising questions about the sustainability of profit growth."

Meta achieved record revenue of $56.31 billion in Q1 2026, a 33% increase, and net income of $26.8 billion, up 61%. However, $8.03 billion of this profit was due to a one-time tax benefit. Daily active users fell 5% sequentially to 3.56 billion, marking the first decline in Meta's history. The stock dropped 9% after hours as the company raised capital expenditure guidance to $125-145 billion and announced the layoff of 8,000 employees, indicating a shift towards automation and AI infrastructure investment.

Read at TNW | Insights