META reports Q1 2026 EPS of $10.44, 57% above consensus, but CapEx hikes and Reality Labs losses weigh on sentiment.
Meta Platforms reported Q1 2026 earnings per share of $10.44, surpassing estimates by 57% and driving revenue to $56.31 billion, a 33% year-over-year increase. Despite the beat, shares remain flat year-to-date at $656.73, as investors digest higher execution risks.
The company raised its 2026 capital expenditure guidance to $125 billion-$145 billion, up from $115 billion-$135 billion, while Reality Labs posted a $4.03 billion operating loss. Regulatory pressures and litigation risks further dampen sentiment, offsetting strong fundamentals like 41% operating margins.
Analysts see 26% upside to $828, while proprietary models forecast $908, citing earnings growth outpacing multiple expansion. Shares have rallied 15.9% over the past month but remain 8.2% lower over the past year.