Meta Reports Strong Q1 Revenue and Profit Growth Amid Workforce Restructuring
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Meta reported a 33% increase in first-quarter revenue to $56.3 billion, with net income rising 61% to $26.8 billion. The company also announced plans to lay off 8,000 employees and close 6,000 open roles in May. Meta expects continued revenue growth in the second quarter and has significantly increased its capital spending forecast for the year.
Facts First
- Q1 2026 revenue grew 33% year-over-year to $56.3 billion, exceeding analyst projections.
- Net income surged 61% to $26.8 billion, or $10.44 per share, aided by an $8.03 billion tax benefit.
- Meta plans to lay off 8,000 employees (about 10% of its workforce) and close 6,000 open roles in May.
- 2026 capital spending is projected to rise to a range of $125 billion to $145 billion, up from prior guidance.
- Q2 2026 revenue is forecast to be between $58 billion and $61 billion.
What Happened
Meta reported first-quarter 2026 revenue of $56.3 billion, a 33% increase compared to the same period last year. This exceeded the $55.45 billion revenue analysts had projected. Net income for the quarter was $26.8 billion, an increase of 61%, which translates to $10.44 per share. This result was partially aided by an $8.03 billion income tax benefit, which offset part of a non-cash tax charge from the previous year. During the quarter, Meta also released its first model from Meta Superintelligence Labs.
Separately, last week Meta informed employees of plans to lay off 8,000 staffers, approximately 10% of its workforce, in May. The company also plans to close 6,000 open roles.
Why this Matters to You
If you are a Meta shareholder, the strong earnings and revenue beat may be reflected in the company's stock price. If you or someone you know works at Meta, the announced layoffs could directly impact job security and workplace morale. The company's increased capital spending... suggests Meta is heavily investing in its future infrastructure, which could influence the broader tech job market and supplier ecosystem.
What's Next
Meta expects its second-quarter 2026 revenue to be between $58 billion and $61 billion. The company has also raised its full-year capital spending forecast to a range of $125 billion to $145 billion, up from a previous range of $115 billion to $135 billion. The planned workforce reduction of 8,000 employees is scheduled for May.