Meta Platforms (META) will report its first-quarter earnings on Wednesday, April 29, after the market closes. Expectations are high after META stock gained 26.5% over the past month, driven by strong advertising revenue and growing investor optimism around AI. However, concerns remain around rising AI-related spending. Heading into earnings, Wall Street remains strongly bullish on META stock but will be watching closely to see whether the company’s massive AI investments can support another rally or if higher costs will begin to pressure margins.
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For context, Meta Platforms is a U.S.-based technology company that owns Facebook, Instagram, WhatsApp, and other digital platforms. It is also heavily investing in AI, virtual reality, and large-scale data center infrastructure.
What Analysts Expect from Meta’s Q1 Earnings
On Wall Street, analysts expect Meta to report first-quarter earnings per share of $6.67, up from $6.43 a year ago. Revenue is expected to rise more than 30% year over year to $55.56 billion in Q1.
Investors will be closely watching advertising demand, profit margins, and AI spending guidance. This earnings report will be a key test of whether the social media giant can maintain strong ad growth while continuing heavy investment in AI infrastructure.
All Eyes on Meta’s AI Spending
Meta’s AI spending is already showing returns. Ad targeting improvements drove strong revenue growth in recent quarters, and AI-recommended content has meaningfully boosted engagement on Facebook and Instagram. Those are real, measurable wins that justify the rally so far.
But heading into Q1 earnings, the market wants more than engagement metrics. Investors will be closely watching Meta’s capital spending guidance, especially after the company signaled $60 billion to $65 billion in AI infrastructure spending for 2026. Any increase in that number without clear proof of stronger revenue growth could worry the market.
Another key focus will be the monetization of AI agents, as CEO Mark Zuckerberg has made a major bet on AI assistants and business messaging. Q1 results could offer early signs of whether these investments are starting to generate revenue or still remain long-term projects.
Is Meta a Good Stock to Buy Now?
On TipRanks, META stock has a consensus Strong Buy rating among 33 Wall Street analysts. That rating is based on 28 Buys and five Holds assigned in the last three months. The average META price target is $852.64, which implies an upside of 27% from current levels.
