International Companies
Meta trades lower as capex disappoints, user growth falls short
By Iain Gilbert
Date: Wednesday 29 Apr 2026
(Sharecast News) - Facebook parent company Meta headed south in after‑hours action on Wednesday after it reported lower‑than‑expected capital expenditure and missed forecasts on user growth, despite delivering stronger earnings and revenue for the first quarter.
Meta said adjusted earnings per share came in at $7.31, ahead of the $6.79 expected, while revenue rose 33% year‑on‑year to $56.31bn, beating estimates and marking the fastest quarterly growth since 2021 amid continued investment in artificial intelligence.
Daily active people reached 3.56bn, up 4% on the year but more than 5% lower than the fourth quarter and below the 3.62bn expected, with Meta attributing the decline to internet disruptions in Iran and restrictions on WhatsApp access in Russia. Average revenue per person was $15.66, ahead of expectations.
Capital expenditure totalled $19.84bn, well below the $27.57bn consensus, though Meta raised its full‑year capex outlook to $125bn-145bn from its prior $115bn-135bn range, while net income jumped to $26.8bn from $16.6bn a year earlier, boosted by an $8.03bn tax benefit linked to the Trump administration's tax and spending bill.
Looking ahead, Meta guided for second‑quarter revenues of $58bn-61bn, broadly in line with market expectations.
As of 2315 BST, Meta shares were down 5.99% in extended trading at $628.75 each.
Reporting by Iain Gilbert at Sharecast.com
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