Meta opened FY26 with a strong first quarter, reporting revenue of $56.31 billion, a 33% rise from $42.31 billion in the same quarter last year. On a constant currency basis, revenue grew 29%.
Advertising continued to do the heavy lifting. The segment brought in $55.43 billion, up from $41.39 billion a year earlier, keeping Meta’s business firmly anchored around its Family of Apps. Other revenue, which includes hardware and services outside advertising, also grew sharply to $885 million from $191 million.
The company’s ad engine benefited from both scale and pricing. Ad impressions across the Family of Apps rose 19% year on year, while the average price per ad increased 12%.
User growth remained steady. Family daily active people stood at 3.56 billion on average in March 2026, up 6% year on year. However, the number slipped slightly from the previous quarter, with Meta pointing to internet disruptions in Iran and restrictions on WhatsApp in Russia.
Costs also climbed. Total costs and expenses reached $33.44 billion, up 35% year on year. Research and development was the largest expense line at $17.70 billion, while marketing and sales stood at $2.91 billion, only slightly higher than $2.76 billion in Q1 FY25.
Meta’s core apps stayed highly profitable, generating operating income of $26.90 billion. Reality Labs, however, continued to weigh on the company’s results, posting an operating loss of $4.03 billion on revenue of $402 million. The division had reported a $4.21 billion loss in the year-earlier quarter.
The company ended the quarter with 77,986 employees as of March 31, 2026, a 1% increase from last year.
For Q2 FY26, Meta expects revenue between $58 billion and $61 billion, helped by an estimated 2% foreign currency tailwind. Full-year expenses are projected in the range of $162 billion to $169 billion.
The company also flagged ongoing legal and regulatory proceedings in the US and EU, including youth safety-related trials expected later in the year, which it said could result in a material loss.
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