Meta Platforms Inc, owner of Facebook and Instagram, shattered Wall Street expectations on Wednesday, though its transformation into an artificial intelligence company remains expensive and legal threats related to social media addiction and other issues pose potential risks.
“We had an important quarter with strong momentum across our applications and the release of our first prototype of Meta Superintelligence Labs,” Mark Zuckerberg, founder and CEO of Meta, said in a statement. “We are on track to deliver superior personal intelligence to billions of people.”
Meta generated revenue of $56.3 billion in the first quarter, up 33 percent from the same quarter last year. Income from operations rose 30 percent to $22.9 billion, with net income rising 61 percent to $26.8 billion.
But with Meta, all eyes are on the future. The company has spent a fortune building an artificial intelligence lab, and told employees earlier this month of a plan to lay off about 10% of its employee base to shift resources toward new investments.
The company said on Wednesday that its full-year expense guidance remains unchanged at $162 billion-$169 billion, with artificial intelligence being the main driver of that.
Then there are the legal issues, as a number of lawsuits related to social media addiction and youth safety are still making their way through the court system. Meta warns that legal and regulatory matters “could significantly impact our business and financial results.”
“For example, we continue to see scrutiny in cases involving youth, and additional trials are scheduled this year in the United States, which could ultimately result in a financial loss,” he adds.
Daily Active People, which represents those who use its suite of apps, was 3.56 billion on average for March 2026, an increase of 4 percent year-over-year. Ad impressions rose 19 percent year-over-year, with ad price up 12 percent year-over-year.
