Since 2017, Boston Consulting Group and Fortune have partnered to identify firms with long-term growth potential, screening more than 3,000 companies every year for their capacity to generate growth from within.

The Future 120

This ranking evaluates how Fortune 500 companies are deploying AI, and how technology leaders value those investments relative to industry peers.

Fortune AIQ 75

The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

Fortune AIQ 50

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Meta Platforms leaped eight spots to No.&nbsp;22 as its revenue rose 22% year over year, powered by advertising on Facebook and Instagram. Profits topped $62&nbsp;billion, even as Meta spent prodigiously on AI development.

The 300 companies on this year’s list brought in over $12.6 trillion in revenue for the latest 12 months, with the median revenue figure at $22 billion.

America's Most Innovative Companies

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

These 50 companies exemplify the innovation, progress, and potential of AI.

AI Innovators 2025-Meta

Fortune 50 AI Innovators

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are computers, internet services, IT services, semiconductors, and software companies.

Fortune Sector Leaders: Technology

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 26th edition of the list shows how much esteem Big Tech giants command among other business leaders.

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

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The 300 companies on this list are transforming industries from the inside out.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500 2023-Meta

The social media giant and metaverse pioneer formerly named Facebook posted a 1% decline in revenues in 2022, the first such decline in its history as a public company; it still brought in nearly $117 billion. 
<ul> 
 	<li>With a round of layoffs announced in late 2022 and another in spring 2023, Meta cut about 21,000 jobs, or roughly a quarter of its workforce. CEO Mark Zuckerberg described 2023 as a “year of efficiency” in which a leaner Meta can execute its highest priorities more quickly.</li> 
 	<li>Meta pivoted some of its attention and resources from the metaverse to generative A.I. In February 2023, the company announced an A.I. language model called LLaMA that it would use in its chatbots to compete with Google and Microsoft.</li> 
 	<li>In May 2023, the U.S. Federal Trade Commission accused Meta’s core Facebook platform of violating an earlier agreement in which the company had pledged to protect the data of users of its Messenger Kids app. The FTC proposed modifying the agreement to forbid Meta from monetizing minors’ data in any way. The company strongly objected to the proposal, calling it a “political stunt.”</li> 
 	<li>Later in May, the European Union ordered Meta to stop sending Europeans’ personal data to the U.S., and imposed a $1.3 billion fine on the company for its past data transfers, which it said violated European privacy laws.</li> 
</ul>

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

This year’s Fortune 500 marks the 68th running of the list.

F500 2022 Meta

The company formerly known as Facebook climbed seven spots on this year’s Fortune 500; its revenue grew 37.2% in 2021, to $118 billion, and it generated nearly $40 billion in profit. But the name change to Meta Platforms, announced by CEO Mark Zuckerberg in October 2021, is a sign of some of the challenges the company now faces. Meta Platforms’ core social media product, Facebook itself, saw its number of daily active users decline for the first time over the last three months of 2021. Meta also acknowledged that recent changes in privacy settings on Apple’s iOS apps were hurting Facebook’s ad-sales revenue. That changing landscape adds momentum to Meta’s new commitment to the metaverse, the digital and virtual world that Citi predicts will be worth $13 trillion in 2030. In December, Meta disclosed that it had already spent $10 billion on metaverse-related projects. The company admits those will take a long time to pay off, however, and Wall Street is concerned: The company’s share price fell almost 40% over the first four months of 2022.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500-2021-086-Facebook

Facebook, it appears, can’t be hurt—not by major ad buyers boycotting its service, not by state and federal investigations, and not even by a pandemic. Despite the impact of COVID-19 on its ad sales, Facebook impressed Wall Street all year by beating expectations. The company ended 2020 with almost $86 billion in revenues, up 22% year over year, and with $29 billion in profits, up nearly 58%. But Facebook faced major backlash for lax handling of hate on its service, including from former President Donald Trump, whom the service eventually barred after the U.S. Capitol riot. And this year, Facebook risks a big financial hit owing to Apple’s new privacy controls that let users limit tracking of their data.

This year’s Fortune 500 marks the 67th running of the list.

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Collectively, the ranked companies produced a three-year average shareholder return of 33%, vs. 19% for the S&P 500.

FGC-2021-Facebook

100 Fastest-Growing Companies

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-144-Facebook

Facebook was the focus of increased government scrutiny in 2019. Regulators at the state, federal, and international level reviewed the ways the company has handled user data and permitted the dissemination of misinformation—investigations that sometimes led to hefty fines or other penalties. Despite the mounting heat, Facebook continued to rake in revenue in 2019. The company, led by CEO Mark Zuckerberg, had $70.7 billion in sales, up nearly 27% from the previous year. But 2020 will be a particularly challenging one for Facebook as it tries to proactively remove misinformation about the coronavirus pandemic while policing bad actors on its platform during the upcoming U.S. presidential election.

Explore this year's ranking of the 50 companies with the best long-term growth potential.

Future-50-2020-Facebook

Last but not least, the social media player’s underlying business remains strong. And new business opportunities continue to emerge: A global e-commerce strategy (including WhatsApp Pay) shows signs of promise, for example. Analysts project 17% to 20% future, long-term growth. At the same time, reputational risk is high—as is the very real threat of regulatory crackdowns across different regions, including the United States. Perhaps even more ominous, the Facebook core product is seeing declining engagement levels with younger demographics. In short: There is a reason the social network is on this list, but also a reason it comes in at No. 50.

The Future 50

This year's Fortune 500 marks the 66th running of the list.

F500-2020-046-Facebook

Facebook was the focus of increased government scrutiny in 2019. Regulators at the state, federal, and international level reviewed the ways the company has handled user data and permitted the dissemination of misinformation—investigations that sometimes led to hefty fines or other penalties. But despite the mounting heat, Facebook continued to rake in revenue in 2019. The company, led by CEO Mark Zuckerberg, had $70.7 billion in sales, up nearly 27% from the previous year, which helped it rise nearly a dozen ranks in the Fortune 500. But 2020 will be particularly challenging one for Facebook as it tries to proactively remove misinformation about the coronavirus pandemic while policing bad actors on its platform during the upcoming U.S. presidential election.

Collectively, the ranked companies produced a three-year average shareholder return of 19%, vs. 11% for the S&P 500.

Fastest Growing Companies 2020-52-Facebook

Here are the World's Most Admired Companies for 2019 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

Fortune's proprietary methodology allows us to zero in on the 50 global firms that are best poised to deliver—and continue delivering—above average gains.

This year's Fortune 500 marks the 65th running of the list.

Everybody loves an up-and-comer: 2019's top three-year performers in revenues, profits, and stock returns.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

Welcome to the inaugural Fortune Future 50, our new ranking of companies best positioned for breakout growth.

This year's Fortune 500 marks the 64th running of the list.

Everybody loves an up-and-comer: 2018's top three-year performers in revenues, profits, and stock returns.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Everybody loves an up-and-comer: 2017's top three-year performers in revenues, profits, and stock returns.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 62nd running of the list.

Too fast to be stopped: 2016's top three-year performers in revenue, profits, and stock returns.

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Nike, Cisco, MasterCard, SABMiller, Vodafone, Google—and 45 other companies that are doing well by doing good.

Change the World

This year's Fastest-Growing Companies marks the 19th running of the list. In our annual list of public companies with the most stellar three-year profit, revenue, and stock growth, Facebook makes its first appearance.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Future 120

Founded in 2004 as Facebook, Meta operates the world’s largest social media platforms and has heavily influenced the development of the internet over the past two decades through its pioneering use of personal data collection and targeted advertising. Meta’s products include Facebook, image-sharing app Instagram, and messaging platforms Messenger and WhatsApp; together, they enable users to keep in touch, share images and videos, and buy and sell goods. Meta’s Reality Labs segment develops virtual-reality-related consumer hardware and software, while Meta AI develops artificial intelligence tools including language-processing models. Facebook renamed itself Meta in 2021.

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Meta Platforms (META): Company Profile, Stock Price, News, Rankings

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Meta Platforms

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Good afternoon. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to Meta's first quarter 2026 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. To withdraw your question, again, press star one. We ask that you limit yourself to one question, and this call will be recorded. Thank you very much. Kenneth Dorell, Meta's Director of Investor Relations, you may begin.

Thank you. Good afternoon, and welcome to Meta Platforms' first quarter 2026 earnings conference call. Joining me today to discuss our results are Mark Zuckerberg, CEO, and Susan Li, CFO. Our remarks today will include forward-looking statements, which are based on assumptions as of today. Actual results may differ materially as a result of various factors, including those set forth in today's earnings press release and in our annual report on Form 10-K filed with the SEC. We undertake no obligation to update any forward-looking statement. During this call, we will present both GAAP and certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release. The earnings press release and an accompanying investor presentation are available on our website at investor.atmeta.com. Now, I'd like to turn the call over to Mark.

All right. Hey, everyone. Thanks for joining today. We had a strong quarter for our community, our business, and our progress towards AI. More than 3.5 billion people use at least one of our apps every day. We saw a small decrease in total family dailies due to internet outages in Iran and blocks in Russia. Otherwise, trends across our apps are strong. Daily and monthly actives on Instagram and Facebook continue to grow, with video driving all-time high engagement across both apps. WhatsApp continues to see strong momentum too, including in the U.S., and Threads continues on its trajectory to be the leading app in its category. Our biggest milestone so far this year has been the release of our Muse family of models and our first model, Muse Spark, along with a significantly upgraded new version of Meta AI.

This was the first release from Meta Superintelligence Labs. It shows that our work is on track to build a leading lab. Over the past 10 months, we have built the strongest research team in the industry and established the scientific and technical foundations to scale very advanced models. Spark is just one step on that scaling ladder. We are already training even more advanced models. Spark has already made Meta AI a world-class assistant that leads in several areas related to our vision of personal superintelligence, including visual understanding, health, shopping, social content, local, creating games, and more. We're hearing very positive feedback on it so far. We've seen large increases in Meta AI use since releasing the updates. The Meta AI app has consistently been near the top of the app stores as well.

Now that we have a strong model, we can develop more novel products as well. Since I first wrote about our vision for personal superintelligence last year, we've been focused on delivering personal and business agents to billions of people around the world. Our goal is not just to deliver Meta AI as an assistant, but to deliver agents that can understand your goals and then work day and night to help you achieve them. My view of AI is very different from many others in the industry. I hear a lot of people out there talk about how AI is going to replace people. Instead, I think that AI is going to amplify people's ability to do what you want, whether that's to improve your health, your learning, your relationships, your ability to achieve your personal career goals, and more.

My view is that human progress has always been driven by people pursuing their individual aspirations, and I believe that this will continue to be true in the future. People will be more important in the future, not less. Meta believes in empowering individuals, and those are the kinds of products that we're gonna build, and I believe that they're going to be some of the most important and valuable products of all time. We are building a personal agent focused on helping people achieve the diverse goals in their lives. We're also building a business agent focused on helping entrepreneurs and businesses across the world use our tools and others to grow their efforts, reach new customers, and serve existing customers better. These agents will work together to form an ecosystem.

Whether you use our personal or business agents to achieve your goals, I believe that the future will see a massive increase in entrepreneurship from people creating new things that they've always wanted to exist but previously didn't have the tools to bring into the world. We're already testing an early version of business AIs. Weekly conversations have grown 10x since the start of this year. We're also working on using Spark in our upcoming models to improve our recommendation systems and core business in Facebook, Instagram, and Ads. Right now, our apps primarily help people accomplish three important goals: connecting with people, learning about the world, and entertainment. We've always wanted our apps to understand more of people's goals so we can help improve their lives in all the ways that they want. These new AI models will let us understand this in more detail.

Instead of just looking at statistical patterns of what types of people engage with what content, for the first time in Meta's history, we're going to be able to develop a first principles understanding of what you care about. What each piece of content in our system is about, so that way we can show you more useful things for what you're trying to accomplish. We'll also be able to create personalized content specifically for people to help you achieve your goals as well. Since our recommendation systems are operating at such large scale, we'll phase in this new research and technology over time. The trend over the last few years seems clear that we are seeing an increasing return on the amount that we can improve engagement for people and value for advertisers.

This encourages us to continue investing heavily in what we expect will provide increasing value over the coming years as well. On that note, we are increasing our infrastructure CapEx forecast for this year. Most of that is due to higher component costs, particularly memory pricing. Every sign that we're seeing in our own work and across the industry gives us confidence in this investment. That said, we are very focused on increasing the efficiency of our investments. As part of that, we are rolling out more than 1 GW of our own custom silicon that we're developing with Broadcom, as well as significant amount of AMD chips to complement the new NVIDIA systems that we're rolling out as well.

One of the primary goals of our Meta Compute initiative is to lead the industry in efficiency of building Compute, and we expect that will be a strategic advantage over time. Talking about building physical goods at scale, our AI glasses continue to perform well with the number of people using them daily tripling year-over-year. This continues to be one of the fastest-growing categories of consumer electronics ever. We released Ray-Ban Meta Optics this quarter, designed for all-day wear rather than primarily as sunglasses. Building on our release of Oakley last year, we have some exciting new partnerships and styles that I think are gonna have the potential to reach even more people coming later this year. All of our glasses are designed to easily update to use our newest AI models and features.

I'm also really excited to see the glasses evolve from being able to answer questions to being able to be a personal agent that's with you all day long, helping you remember things and achieve your goals. Beyond glasses, I am excited for more of our metaverse efforts to be powered by the AI models we're training as well. We remain the biggest investors in the VR space across the industry, but we are focused on making our VR business sustainable as we invest more in other areas like AI and glasses. Before wrapping, I wanna talk for a moment about how AI is transforming our work. We are seeing more and more examples where one or two people are building something in a week that would have previously taken dozens of people months.

I wanna make sure that Meta is the best place in the world for these types of people to come and make an impact. We're building the next evolution of our company around these people, and there's a lot that we can do to enable this: building the best infrastructure for creating and delivering products at scale, streamlining our teams so they aren't bigger than they need to be, recognizing and rewarding the people who are having outsized impacts, and setting ourselves up to try many more ideas and take on many new projects in the future. Of course, we will continue pushing to increase our efficiency as well, but overall, I think the future is about building many more higher quality things than we've ever built before. All right. That is what I wanted to cover today. We are living through a historic technological transformation.

We are among the few companies positioned to shape the future, and we are on track to do that. I'm looking forward to delivering personal super intelligence to billions of people. As always, I am grateful for the hard work of our teams and to all of you for being on this journey with us.

Thanks, Mark. Good afternoon, everyone. Let's begin with our segment results. All comparisons are on a year-over-year basis unless otherwise noted. We estimate 3.56 billion people used at least one of our family of apps on a daily basis in March, which declined slightly from December due to internet disruptions in Iran and a restriction on access to WhatsApp in Russia. Absent these impacts, growth in family daily active people would have been positive quarter-over-quarter. Q1 total family of apps revenue was $55.9 billion, up 33% year-over-year. Q1 family of apps ad revenue was $55 billion, up 33%, or 29% on a constant currency basis. In Q1, the total number of ad impressions served across our services increased 19%.

Impression growth was healthy across all regions, driven primarily by growth in engagement and users, as well as ad load optimizations. The global average price per ad increased 12% year-over-year in Q1, with broad-based growth as we benefited from ad performance improvements, better macro conditions versus Q1 of last year, and currency tailwinds in international regions. This was partially offset by strong impression growth, including from lower monetizing regions. Family of apps other revenue was $885 million, up 74%, driven primarily by WhatsApp paid messaging and subscriptions revenue. Within our Reality Labs segment, Q1 revenue was $402 million, down 2% year-over-year due to lower Quest headset sales, which were partially offset by continued strong growth in AI glasses revenue. Moving now to our consolidated results.

Q1 total revenue was $56.3 billion, up 33%, or 29% on a constant currency basis. Q1 total expenses were $33.4 billion, up 35% compared to last year. Year-over-year growth was driven mainly by infrastructure costs and employee compensation. The growth in infrastructure costs was due to higher depreciation, data center operating costs, and third-party cloud spend. The growth in employee compensation was driven by technical hires we've added over the past year, particularly AI talent. We ended Q1 with over 77,900 employees, down 1% from Q4 as the impact of headcount optimization efforts in certain functions was partially offset by hiring in priority areas of monetization and infrastructure. First quarter operating income was $22.9 billion, representing a 41% operating margin.

Q1 interest and other income was -$1.1 billion, driven by unrealized losses on our equity investments. Our tax rate for the quarter was -23%, which was favorably impacted by a tax benefit of $8.03 billion. This benefit partially relieves the $15.93 billion non-cash tax charge we recorded in the third quarter of 2025, which reflects updated guidance from the U.S. Treasury issued in February 2026 regarding the tax treatment of previously capitalized R&D expenditures in the United States. Absent the tax benefit, our Q1 tax rate would have been 14%. Net income was $26.8 billion or $10.44 per share. Absent the tax benefit, our net income and EPS would have been $18.7 billion and $7.31, respectively.

Capital expenditures, including principal payments on finance leases, were $19.8 billion, driven by investments in servers, data centers, and network infrastructure. Free cash flow was $12.4 billion. We ended the quarter with $81.2 billion in cash and marketable securities and $58.7 billion in debt. Turning now to the business performance. There are two primary factors that drive our revenue performance: our ability to deliver engaging experiences for our community and our effectiveness at monetizing that engagement over time. On the first, we're continuing to see significant gains from our content recommendation initiatives. On Instagram, the ranking improvements that we made in Q1 drove a 10% lift in Reels time spent. On Facebook, total video time increased more than 8% globally in Q1, the largest quarter-over-quarter gain in four years.

Within the U.S. and Canada, ranking improvements we made drove a 9% increase in video watch time on Facebook in Q1. These gains are benefiting from advances we're making across the full stack. Starting with data, we doubled the length of user interaction sequences we use for training on Instagram in Q1 and increased the richness of how each user interaction is described, enabling our systems to develop a deeper understanding of user interests. Within our models, we've significantly increased the speed with which our ranking models index new posts, which is enabling us to recommend them sooner after they are published. We're also applying more advanced content understanding techniques, which is enabling us to quickly identify posts that may be interesting to someone, even if they haven't engaged with a lot of similar content.

These and other improvements have enabled us to increase the diversity and recency of recommended content, with same-day posts now representing more than 30% of recommended Reels on both Instagram and Facebook, more than double the levels one year ago. We're also using AI to unlock more inventory by auto-translating and dubbing videos into a viewer's local language, enabling us to recommend a more diverse set of content. Over half a billion users on each of Facebook and Instagram are now watching AI-translated videos weekly. Looking forward, we're making several investments we expect will deliver more valuable recommendations. This year, we will continue scaling up our models in several dimensions, including their size and complexity, while incorporating LLMs to deepen content understanding across our platform. This will enable us to better match people to a wider variety of content aligned to their interests.

At the same time, we are executing on our longer-term efforts to develop the next generation of our recommendation systems. This includes building foundation models that power organic content and ads recommendations, as well as developing LLM-based recommender systems. Our focus this year is validating the model architectures and techniques in these domains before we scale them out in future years. Aside from our recommendations work, we are focused on deploying the models from Meta Superintelligence Labs to enable a new set of product experiences. We're seeing encouraging results within Meta AI since we began powering responses with the first model from MSL, Muse Spark. In tests we ran leading up to the launch, we saw meaningful engagement gains that accelerated week over week with each new iteration of the model.

We're seeing similar gains within Meta AI following the broad rollout of our new model with double-digit percent increases in Meta AI sessions per user. Muse Spark is now powering Meta AI in direct chat threads across our family of apps, as well as the standalone Meta AI app and website, giving billions of people globally access to our latest model. Overall, we're very encouraged by the momentum within our research and product roadmap and look forward to sharing more detail on what we're building over the course of the year. Turning to the second driver of our revenue performance, increasing monetization efficiency. The first part of this work is optimizing the level of ads within organic engagement. Here, we continue to enhance our systems to show ads at the optimal time and location.

In Q1, we also expanded availability of ads on our newer surfaces, including bringing ads on Threads to people in more markets. On WhatsApp, we're making good progress with the rollout of ads and status, with hundreds of millions of people now viewing them daily. Moving to the second part of increasing monetization efficiency, improving performance for the businesses who use our services. To do so, we're deploying AI more deeply across each layer of our systems and tools. Within our ad systems, we're delivering performance gains as we deploy more complex and predictive models. In Q1, enhancements we made to Lattice's modeling and learning techniques, along with advances in our GEM model architecture, drove a more than 6% increase in conversion rate for landing page view ads. In addition, we've been investing in more performant inference models for when we're serving ads.

In the second half of last year, we began rolling out our new adaptive ranking model, which is an LLM-scale ads recommender model that we use for inference. This model improves our inference ROI by routing requests to more Compute-intensive inference models when it determines there is a higher probability of conversion. In Q1, we expanded coverage of our adaptive ranking model to support offsite conversions, which drove a 1.6% increase in conversion rates across the major surfaces on Facebook and Instagram. We're also leveraging AI to make it easier for businesses to manage their customers, develop ad creative, and engage with customers. The Meta AI business assistant has now been fully rolled out to all eligible advertisers on supported Meta buying surfaces, providing personalized recommendations to advertisers, resolving account issues, and servicing campaign insights to help optimize results.

Performance has been strong since we began testing the assistant in Q4, with common account issues being resolved at a 20% higher rate. This week, we're also introducing Meta Ads AI connectors in open beta, providing advertisers the ability to connect their Meta Ad account directly to an AI agent. We've always supported advertisers, both on our platform and thru tools like the Marketing API. Now we're extending that to AI so businesses and agencies can analyze and optimize campaigns with the tools they're already using. Usage of our ad creative tools is also scaling, with more than 8 million advertisers using at least one of our gen AI ad creative tools, and particularly strong adoption among small and medium-sized advertisers. These tools are benefiting performance as well, with advertisers using our video generation feature seeing more than 3% higher conversion rates in tests.

We're also seeing good traction in using AI to facilitate customer engagement. In Q1, we expanded business AIs on WhatsApp to SMBs across Latin America and Indonesia, as well as on Messenger in Asia Pacific. We now have more than 10 million conversations each week being facilitated through business AIs, up from 1 million at the start of the year. We'll further expand access to more countries this quarter while adding more capabilities to the AIs. We also continue to invest in the value optimization suite, which helps advertisers maximize their return on ad spend by prioritizing the highest value conversions rather than optimizing solely for the most conversions at the lowest cost. Adoption by businesses has been strong following performance improvements we've made over the past year, with the annual revenue run rate of our value optimization suite now over $20 billion, more than doubling year-over-year.

Last, I wanna touch on our commerce efforts. People discover products on our platforms through ads and organic posts, with brands increasingly turning to creators to promote their products. This is contributing to rapid growth in our partnerships ads product, with its revenue run rate more than doubling year-over-year in Q1 to $10 billion. To support the product discovery and purchasing happening through creators, we're expanding our solutions beyond ads. Last month, we rolled out our affiliate partnerships offering on Facebook to more test partners, so creators can tag products from participating retailers on their posts and earn a commission when someone makes a purchase. We have also started testing similar experiences on Instagram. We see a real opportunity to help people more easily discover and buy products within our services, particularly as we incorporate AI deeply across our platforms.

Next, I would like to discuss our approach to capital allocation. Compute is becoming increasingly important as it determines the quality of services we can provide, including powering more capable models and delivering innovative new products. It is also becoming more critical to how we work at Meta, as we are entering a world where employees are managing agents to help them generate new ideas, run experiments, execute tasks, and build products. We are investing aggressively to meet our infrastructure needs and ensure we maximize our strategic flexibility over the coming years. This includes substantially expanding our own data center footprint and striking deals throughout the supply chain to secure necessary components for future capacity. We're also signing cloud deals that will come online over the course of this year and 2027, allowing us to scale more quickly.

These multi-year cloud deals and our infrastructure purchase agreements drove a $107 billion step-up in our contractual commitments this quarter. Our investments will support our training needs for future models, and most importantly, provide us the inference capacity necessary to deliver personal and business agents to billions of people around the world, along with several other AI product experiences we're developing. As we grow our infrastructure spend, we remain committed to operating efficiently. We recently shared internally that we plan to reduce the size of our employee base in May. We believe a leaner operating model will allow us to move more quickly while also helping to offset the substantial investments we're making. Moving to our financial outlook. We expect second quarter 2026 total revenue to be in the range of $58 billion-$61 billion.

Our guidance assumes foreign currency is an approximately 2% tailwind to year-over-year total revenue growth based on current exchange rates. Turning to the expense and CapEx outlooks. We expect full year 2026 total expenses to be in the range of $162 billion-$169 billion, unchanged from our prior outlook. We continue to expect to deliver operating income this year that is above 2025 operating income. We anticipate 2026 capital expenditures, including principal payments on finance leases, to be in the range of $125 billion-$145 billion, increased from our prior range of $115 billion-$135 billion. This reflects our expectations for higher component pricing this year and, to a lesser extent, additional data center costs to support future year capacity.

Absent any changes to our tax landscape, we expect our tax rate for the remaining quarters of 2026 to be between 13% and 16%. We continue to monitor active legal and regulatory matters, including headwinds in the E.U. and the U.S. that could significantly impact our business and financial results. For example, we continue to see scrutiny on youth-related issues and have additional trials scheduled for this year in the U.S., which may ultimately result in a material loss. In closing, Q1 was a solid start to the year, with strong execution across our core ads and engagement initiatives. We're also making exciting progress on our AI research and product efforts and expect to build that momentum over the course of this year. With that, Krista, let's open up the call for questions.

Thank you. We will now open the lines for a question-and-answer session. Please limit yourself to one question. Your first question comes from Brian Nowak with Morgan Stanley. Please go ahead.

Thanks for taking my question. Mark, I wanted to ask you just about the level of investment you're making and sort of the signposts you're watching to ensure you're gonna generate ROIC on all these investments behind Muse and the other products. If you could just sort of let us know some of the key factors you're watching over the next 12 to 24 months, whether it's Meta AI, Muse advances, the core algorithm. What are you sort of watching for most just to make sure that you're on the right path to generating healthy ROIC on all this CapEx and infrastructure spend?

That's a very technical question for, you know, basically—The things that we're watching are to make sure that we're on track building leading models and leading products. The formula for our company has always been build experiences that can get to billions of people, and focus on monetizing them once you get to scale. I think that that's—We're seeing a little bit of that here, where basically we invest in advance to build leading models, then we convert that into leading products, and then we think that these are going to be some of the most important products that get built over the next decade.

I think just like anything else that we've done over time, the basic milestones that I look at are around, first, technically, are we delivering the quality to enable a great product? Second, when you have the product, how is it scaling? Third, you look at the monetization, and then you drive up the efficiency of it towards increasing profitability. I don't—I mean, like, I don't think we have a, you know, a very precise plan for exactly how each product is going to scale month-over-month or anything like that. I think we have a sense of the shape of where these things need to be.

I think if you look at the usage of these and the quality of the products, and the quality of the models that are out there and the use that other frontier models are getting and the trajectory of that, I'm quite comfortable that, A, the lab that we're building is on track to be a leading lab in the world. I think Muse Spark was a very high-quality model. It powers Meta AI, which I think is now a world-class assistant. We have an ability to be able to grow that and have a large amount of engagement. Over the coming quarters, we're just gonna be tracking how do our next set of training runs go. How do our products scale? How excited are we about the products in the pipeline?

Well, right now we're very excited. We'll also ramp up monetization over that period of time as well. I think that those are the set of things that I look at. I think, for the kind of specific financial questions, I think Susan can jump in if there's anything more to add.

Your next question comes from the line of Mark Shmulik with Bernstein. Please go ahead.

Yes, thanks for taking the questions. Mark, you know, I guess now that we've got, Muse Spark kind of, out there launched.

How are you thinking about the team's focus here, kind of divided onto further model training runs and kind of further specialization and that personal intelligence goal, you know, versus product launches and kind of shipping more products out the door? Susan, I guess kind of, as a follow-up to Brian's question, I know it's too early to discuss 2027 CapEx, but, you know, we've had peers mention tonight a potential significant step up. Any way to think about dimensionalizing kind of how we think about some of the returns or traction this year and how it might affect 2027 spend? Thanks.

I mean, I think the roadmap from the team has been pretty consistent. We have the research team, which is focused on scaling increasingly intelligent models with capabilities for the specific things that we're focused on, which are business and personal agents. You know, we just released our first model, and I talked about in my comments how we're climbing this scaling ladder towards greater capabilities and scale for the models. That work continues. We have our next set of more advanced models in training now, and that is that work will, I think, just continue. I mean, that's a loop. I don't think we're gonna be done with that anytime soon. We're gonna have teams that are just consistently focused on training more intelligent and more capable models in the ways that we want.

We have our product team, that team is now really unlocked to be able to build things on top of our models because we now have very strong models. Before this, you know, we had been prototyping a bunch of things using other different models, whether it was our previous older models or kind of using the APIs from other companies. Now we're unlocked to be able to go build things and get them to scale on top of our own models. I think you will see that over some period of time. I tried in my opening remarks to give a bit of a sense of where we're going, I think that, you know, more of the details of that will become clear over the coming months.

I think that these are just both loops that we'll iterate on. We'll keep on iterating on the intelligence. We'll keep on working on building new products and scaling the products. As we get to product market fit, we're also going to increasingly focus on building the businesses around them and decreasing the costs. This is kind of how we've done everything over the last 20 years of running the company, and that is basically the plan.

Mark, on your second question, we aren't providing a specific outlook for 2027 CapEx, and we are frankly undergoing a, you know, very dynamic planning process ourselves as we're working through what our capacity needs will be over the coming years. Our experience so far has been that we have continued to underestimate our Compute needs, even as we have been ramping capacity significantly as the advances in AI have continued and our teams continue to identify compelling new projects and initiatives, and now too there are very compelling internal use cases. Our expectation is that Compute will become even more central to the business going forward, and it will be critical to determining the quality of the models we develop, the types of products we can introduce, how productive we can be as an organization.

We're going to continue building out our infrastructure with flexibility in mind, and if we end up not needing as much as we anticipate, we can choose to bring it online more slowly or reduce our spending in future years as we grow into the capacity that we're building now.

Your next question comes from the line of Eric Sheridan with Goldman Sachs. Please go ahead.

Thanks so much for taking the question. Maybe if I can build out on one of the topics that was discussed in the, in the prepared remarks, but just the opportunity set that sits in front of the company with respect to putting agentic Compute in front of both consumers and enterprises. You've long been associated with sort of the consumer landscape, and I am curious about how you're thinking about extensions of the media engagement parts of your business model and the commerce parts of the business model to become more agentic over time. What do you see also as the opportunity set that sits in front of you across SMBs and enterprises where historically you maybe haven't had as much product velocity? Thanks so much.

Do you want to? Thanks, Eric. I would say, you know, in the near term, obviously, the biggest focuses are some of the areas that you mentioned, around deepening engagement, obviously, with our existing, our existing community and user base, making ad experiences meaningfully more personalized, more engaging, more valuable, helping SMBs find and engage with customers across our platform. Those are some of the, I think, most intuitive and adjacent opportunities to the business that we have today.

Of course, as we are able to build out more agentic capabilities, you know, enabling agents to help people be more productive, but also agents for businesses and enabling, frankly, those agents to interact with each other, and, you know, build what we hope will be a thriving commerce ecosystem on our platform. You know, I would say some of these are a little bit further out, you know, especially in that latter category of things. Again, the focus is on building personal super intelligence. You know, building a consumer agent that can work for you and help you get things done. That right now is a consumer experience that we're focused on, but we think there will be clear monetization opportunities over time. You can imagine commission structures or a premium offering.

On the business side, we're seeing a large opportunity, of course, around agents and scaling our business AI initiatives. I think I mentioned earlier in my remarks that there are over 10 million weekly conversations between people and business AIs on our messaging platforms. That's up from 1 million at the start of the year, and we're going to continue expanding globally in Q2. Business AIs today are currently free for most businesses on our messaging apps. As we make more progress, you know, we expect that we will also work towards establishing a longer-term monetization model. We'll also consider other services that we can offer to businesses in the future, but we don't have anything more to share today.

Your next question comes from the line of Youssef Squali with Truist Securities. Please go ahead.

Great. Thank you very much for taking the question. Maybe one for Mark and one for Susan. Mark, Ray-Ban Oakley AI glasses continue to perform really well for you guys, but EssilorLuxottica owns and manages a lot more brands. What are the gating factors to see the launch of additional glasses under these other brands this year, and what would be a successful year for you as, you know, you look back at 2026, maybe in terms of units sold? Susan, on that 10% RIF, how much of that is due to efficiencies for maybe AI implementation versus just the need to stay fit? As you look at your employee needs over time, how do you see that growing maybe relative to your overall top-line growth? Thank you very much.

I can go ahead and take both of those. I might answer your second question first. You know, I'm just trying to make sure I got all of the parts of the question. In terms of what these sort of, you know, kind of the optimal size of the company, I think over time, we don't really know what the optimal size of the company will be in the future. I think there's a lot of change right now with AI capabilities advancing rapidly. We're very focused on leveraging AI tools to substantially increase our productivity, and we're seeing that reflected in the accelerating output from our engineers.

We're generally approaching this with a bias toward wanting to use these tools to build even more products and services than we would have than we would have before. At the same time, we're making very significant investments in infrastructure, and we are very focused on continuing to operate efficiently. I think we will be continuously evaluating how we're structured just to make sure we're best set up to deliver against our priorities over the coming years. That is, I think, your second question. The first question was about was about the AI glasses. We have, you know, we're continuing to see strong growth in obviously the AI glasses sales over the course of Q1.

Demand for the expanded portfolio lineup has generally been quite strong. We're seeing sales shift now from the prior generation of Ray-Ban Meta to the latest generation, which I think speaks to the value of the improved features, like extended battery life and higher features like higher resolution video, higher resolution video capture. Sorry. We're pretty excited about the progress we've made with glasses. We see strong interest now in the Ray-Ban Meta displays with the Meta Neural Band. That's an encouraging sign that there's consumer appetite for display glasses, which is kind of the next generation of how this product evolves.

I think this is an area that we continue to be excited about and are investing in.

Your next question comes from the line of Justin Post with Bank of America. Please go ahead.

Great. Thanks for taking my question. Mark, it took about 10 months to get Muse Spark out. I think it's a pretty good pace. Just help us understand what kind of unlock that is for some of the new products you're developing, and how is the product cadence gonna be over the next nine months on either consumer or business enterprise products built on top of that model.

I mean, the field is moving pretty quickly. I mean, I'm very happy that I think the lab that has gone the fastest from standing up the lab to having a very kind of widely accepted strong model. I think that that's good. I take that as a very significant validation of the effort, that the team is working well together, that the infrastructure is working, that the effort is on track. I think that that's basically the main thing that we've learned over the last quarter, that I would take away is, like, where, you know, we started what is this pretty big bet, and it's on track for our plan.

In terms of what exactly the cadence is gonna be, it's tough for me to say both because I don't really wanna share competitively sensitive information and because I think some of the stuff, we are more focused on quality than hitting a specific date. I mean, on the research side, this is research, right? We are trying novel things. You don't exactly know when they're gonna land. I mean, let me put it this way. There's a lot of agents out there, right? That people are building for different things. There aren't that many that I would want to give to my mother. I think getting to like that quality bar is something that I care about more than hitting a specific week for launching or something like that.

With that said, you know what I mean, we're in a zone here where, you know, the teams don't check in with me like once a quarter. You know, like, we make meaningful progress like day over day. I think that's part of the fun of developing in this world is that people can make very rapid progress. Small groups of people and teams can make very rapid progress. I think we're gonna see a lot of innovation. You know, the timing of this of this call is good in some ways because, you know, the Muse Spark release, I think was positive. The Meta AI first release, I think is positive. I think that shows that we're on track.

Meta Platforms (META) Q1 2026 Earnings Call Transcript

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