Meta’s Q1 FY2026 revenue rose 33% YoY to $56.31B as capex guidance increased to $125-$145B amid AI infrastructure investments.
Wells Fargo reduced its price target for Meta Platforms (META) to $765 from $770 while maintaining an Overweight rating. The $5 adjustment reflects rising costs for components and data centers, though the firm retains confidence in Meta’s AI-driven growth thesis.
Meta reported Q1 FY2026 revenue of $56.31 billion, up 33% year-over-year, and raised full-year capital expenditure guidance to $125-$145 billion. Ad revenue growth was supported by a 19% increase in impressions and a 12% rise in average ad prices.
Despite not selling cloud services, Meta is positioned as a key AI infrastructure beneficiary, with investments in compute power driving monetization through its core advertising business.