May 2026 headcount reduction of approximately 8,000 employees impacted both Family of Apps and Reality Labs segments, generating $1.18 billion in severance expense within Q2 2026; total headcount stood at 75,472 as of June 30, 2026 (down 1% YoY), with the majority of impacted employees expected to exit by end of Q3 2026.
Q2 2026 capital expenditures were $31.08 billion (including finance lease principal payments), with construction in progress rising from $50.5 billion at year-end 2025 to $80.3 billion; full-year 2026 capex is guided at $130-145 billion to support AI and core infrastructure. Non-cancelable contractual commitments reached $349.31 billion as of June 30, 2026 (mostly third-party cloud capacity and data center investments, with $53.5 billion due in 2026 and $81.7 billion in 2027). In July 2026, Meta entered additional data center leases of approximately $68 billion (18-20 year terms, commencing 2027-2028).
Meta is scaling co-developed data center campus ventures: the Louisiana venture (20% interest, entered October 2025) has ~$27 billion in total estimated development costs, lease agreements commencing 2029 with ~$12.3 billion in initial lease commitments, and residual value guarantees up to ~$28 billion (maximum loss exposure $46.0 billion). In March 2026, Meta approved disposition of $1.48 billion of data center assets (mostly construction in progress and land) for contribution to an El Paso, Texas co-development venture; a July 2026 exclusivity agreement (expected to close Q3 2026) envisions Meta contributing ~$2.3 billion in assets, receiving a ~$1 billion one-time distribution, and assuming residual value guarantees with ~$13 billion maximum exposure.
In May 2026, Meta issued $25.0 billion of fixed-rate senior unsecured notes in six series (maturities 2031-2066, stated rates 4.55%-6.45%), raising total long-term debt to $84.0 billion from $59.0 billion at year-end 2025; no share repurchases were executed in H1 2026, with $25.0 billion remaining authorized under the buyback program.
Reality Labs Q2 2026 revenue rose 16% YoY to $431 million, driven by higher AI glasses sales partially offset by lower Meta Quest hardware sales; RL operating loss widened 2% to $4.62 billion for the quarter ($8.65 billion for H1 2026), with full-year 2026 RL losses expected to remain similar to 2025. R&D expense surged 67% YoY in Q2, attributed to higher share-based compensation, data center/infrastructure costs, severance, and third-party AI token costs.
European regulatory actions had direct operational impact: in June 2026 the European Commission imposed an interim measure requiring WhatsApp to provide its Business API to general-purpose AI providers at no charge (Meta intends to appeal); on April 29 and July 10, 2026, the Commission issued preliminary DSA findings that users under 13 are present on Facebook and Instagram and that both platforms present potentially addictive design features, calling into question Meta's systemic-risk mitigation obligations. Separately, the FTC's January 20, 2026 notice of appeal preserves the possibility of overturning the November 2025 court judgment in Meta's favor on the Instagram/WhatsApp antitrust case.
(Filed on April 30, 2026)
+33.1%
81.9%
$23.4B
Q1 2026 revenue was $56.31B (+33% YoY), driven by ad impressions up 19% and average price per ad up 12%; Family DAP averaged 3.56B in March (+4% YoY) but declined slightly quarter-over-quarter due to internet disruptions in Iran and a restriction on WhatsApp access in Russia; ARPP was $15.66 (+27% YoY); headcount was 77,986 (+1% YoY).
Capital expenditures were $19.84B in Q1 2026 (vs. $12.94B in Q1 2025), with full-year 2026 capex guidance of $125B-$145B to support AI and core business; non-cancelable contractual commitments totaled $237.67B (mostly third-party cloud capacity and infrastructure), uncommenced lease obligations for data centers and network infrastructure reached ~$182.88B with terms through 2036, and in April 2026 Meta entered additional multi-year infrastructure contracts increasing commitments by ~$24B.
Meta holds a 20% equity-method interest in a Louisiana data center campus venture (entered October 2025) with ~$27B in total estimated development costs; lease agreements commence in 2029 with an aggregate initial lease commitment of ~$12.31B and residual value guarantee thresholds of ~$28B; the equity investment's carrying value was $2.37B and maximum loss exposure was $45.99B as of March 31, 2026. Separately, in March 2026 Meta approved disposal of $1.48B in data center assets (mostly construction in progress and land) via contribution to a third party for co-developing data centers.
Reality Labs revenue was $402M (-2% YoY), reflecting lower Meta Quest sales offset by higher AI glasses sales; RL operating loss narrowed 4% to $4.03B, and Meta expects full-year 2026 RL operating losses to remain similar to 2025 (when RL reduced overall operating profit by ~$19.19B).
In youth-related litigation, a March 25, 2026 jury verdict in the first bellwether personal injury trial awarded $6M in damages allocated 70% to Meta; on March 24, 2026, a New Mexico jury imposed a $375M civil penalty, with the state AG seeking ~$3.7B in additional abatement costs plus injunctive relief at a bench trial scheduled May 4, 2026; further bellwether trials are scheduled for June 15 (school district MDL) and July 27, 2026 (user case).
The European Commission issued DSA preliminary findings on April 29, 2026, reflecting its preliminary view that users under 13 are present on Facebook and Instagram and questioning Meta's compliance with systemic risk assessment and mitigation obligations; separately, the FTC filed a notice of appeal on January 20, 2026, challenging the November 18, 2025 court judgment in Meta's favor in FTC v. Meta Platforms (antitrust case over Instagram and WhatsApp acquisitions).
(Filed on January 29, 2026)
+23.8%
81.8%
$35.9B
In October 2025 (Q4), Meta entered a co-development arrangement for a data center campus in Louisiana, contributing $4.30 billion in held-for-sale assets, receiving a $2.55 billion one-time distribution, and holding a 20% equity interest accounted for under the equity method. The parties committed to fund approximately $27 billion in total estimated development costs; Meta also entered lease agreements commencing in 2029 with an aggregate initial lease commitment of ~$12.31 billion and provided residual value guarantees with an aggregate threshold of ~$28 billion. Maximum exposure to loss on the Venture was $45.95 billion as of December 31, 2025.
In Q4 2025, Meta updated its methodology for estimating the percentage of DAP consisting solely of violating accounts, incorporating new data signals reflecting improved ability to identify policy-violating activity and refocusing on the most recent account activity. Under the updated methodology, Meta estimated that less than 5% of worldwide DAP consisted solely of violating accounts, a methodological increase from the prior estimate. Meta also noted that December 2025 worldwide DAP was 3.58 billion on average, up 7% year-over-year from 3.35 billion in December 2024 (quarterly metric).
On November 18, 2025 (Q4), the U.S. District Court for the District of Columbia granted judgment in Meta's favor in FTC v. Meta Platforms, the antitrust case alleging illegal acquisitions of Instagram and WhatsApp (trial ran April 14–May 27, 2025). The FTC filed a notice of appeal on January 20, 2026. Separately, in December 2025, Meta entered a settlement agreement with California to resolve a consumer-protection lawsuit (subject to court approval), and Meta appealed the denial of its motion to compel arbitration in the DZ Reserve ad-audience case to the Ninth Circuit on December 3, 2025.
In the annual filing (context for Q4), Meta guided 2026 capital expenditures at $115 billion to $135 billion to support AI and core business operations, versus $72.22 billion in 2025 (annual). For Reality Labs, Meta expects approximately 70% of 2026 RL operating expenses to go to wearables and 30% to VR/Horizon, and expects 2026 RL operating losses to remain similar to the $19.19 billion incurred in 2025. Meta also extended estimated useful lives of most servers and network assets to 5.5 years effective January 1, 2025 (annual change reducing 2025 depreciation by $2.92 billion).
For the full year 2025 (annual context; not quarter-specific), ad impressions delivered across Family of Apps increased 12% and average price per ad increased 9%, driving total revenue of $200.97 billion (+22% YoY). Meta completed several business acquisitions totaling $4.54 billion ($4.09B cash + $450M stock) during 2025, with goodwill attributed to advancing AI efforts, workforce, and monetization opportunities. A $13.80 billion minority investment in Scale AI closed during 2025. Headcount was 78,865 as of December 31, 2025 (+6% YoY). No share repurchase activity occurred during the three months ended December 31, 2025.
(Filed on October 30, 2025)
+26.2%
82.0%
$10.2B
Q3 2025 total revenue was $51.24B (+26% YoY), driven by 14% growth in ad impressions and 10% growth in average price per ad; Family DAP averaged 3.54B (+8% YoY) and ARPP was $14.46 (+18% YoY). Reality Labs revenue rose 74% to $470M, attributed mostly to Meta Quest and AI glasses sales. Headcount reached 78,450 (+8% YoY), with engineering and technical headcount up 11% to support AI initiatives.
Capital investment in data centers, servers, and AI infrastructure accelerated sharply: Q3 capex was $19.37B, with full-year 2025 guidance of $70-72B and significant growth expected in 2026. Construction in progress rose to $44.0B (from $26.8B at year-end 2024). In October 2025, Meta entered multi-year third-party cloud capacity agreements totaling approximately $40B, and disclosed $81.19B in non-cancelable contractual commitments (mostly cloud, servers, and data centers) plus $58.14B in uncommenced lease obligations. An AI-powered discovery engine for content recommendation is cited as already producing improved user engagement and monetization.
In June 2025, Meta completed a non-voting minority equity investment in Scale AI ($13.79B recorded as a non-marketable equity investment). In October 2025 (subsequent event), Meta contributed $4.3B of held-for-sale data center assets (construction in progress and land) to a new joint venture with a Blue Owl Capital affiliate to co-develop a data center campus in Richland Parish, Louisiana; Meta holds 20% equity, has a $12.3B four-year operating lease commitment (renewable to 20 years), and a residual value guarantee beginning at $28B. No loss was recognized on the asset reclassification in Q3.
European regulatory exposure intensified: the European Commission's April 2025 DMA final decision found Meta's 'subscription for no ads' model non-compliant and imposed a €200M fine; Meta appealed on July 4, 2025, but the filing warns further fines or forced model modifications could materially worsen European user experience and impact European business and revenue as early as later Q4 2025. The FTC v. Meta antitrust trial concluded in May 2025 with post-trial briefing completed September 10, 2025; a court decision is expected in Q4 2025 or later and could require divestiture of Instagram or WhatsApp. On October 24, 2025, the European Commission issued DSA preliminary findings of infringement related to content-reporting mechanisms, moderation appeals, and researcher data access.
Two accounting and tax items materially affected reported earnings: (1) effective January 1, 2025, Meta extended estimated useful lives of most servers and network assets to 5.5 years, reducing nine-month depreciation expense by $2.29B; and (2) the One Big Beautiful Bill Act enacted July 4, 2025 triggered a one-time $15.93B discrete tax charge (including a valuation allowance against U.S. federal deferred tax assets under the 15% Corporate Alternative Minimum Tax), driving the Q3 effective tax rate to 87%. Management expects Q4 2025 tax rate of 12-15% absent further changes.
Research and development expense rose 35% YoY to $15.14B in Q3, reflecting higher employee compensation (including an 11% increase in engineering/technical headcount) and infrastructure costs for AI initiatives, including generative AI and what the filing terms 'superintelligence.' The filing states AI initiatives will require significantly increased infrastructure investment. General and administrative expense jumped 88% YoY to $3.51B in Q3, primarily due to higher legal-related costs, though G&A declined 6% for the nine-month period as prior-year legal costs were elevated.
