Meta’s operating margin of 41% and $12B free cash flow support capex of $125B-$145B for AI expansion.
Meta reported Q1 2026 revenue of $56.31B, a 33.1% year-over-year increase, driven by a 19% rise in ad impressions and a 12% increase in average ad prices. Earnings per share reached $10.44, surpassing estimates of $6.66 for the fifth consecutive quarter.
The company’s operating margin expanded to 41%, outperforming peers like Alphabet, while daily active users grew to 3.56 billion. Free cash flow rose 12% to $12B despite a 47% jump in capital expenditures, underscoring Meta’s ability to fund AI investments from operational strength.
Meta’s capex guidance of $125B-$145B for the year reflects its aggressive AI buildout, though the company maintains robust profitability. Analysts note the ad engine’s resilience amid broader market concerns over AI spending.