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Meta stock drops on quarterly results as 'internet disruptions' in Iran drag down user numbers

Meta beat revenue estimates for Q1 2026 with $56.31 billion in sales, signaling strong AI-related monetization momentum.
Meta's daily active people rose to 3.56 billion, but quarterly growth slowed despite a 4% year-over-year increase.
Management cited Iran-related internet disruptions and WhatsApp access limits in Russia as factors weighing on user growth.
Meta raised its full-year capex guidance to $125–$145 billion to support data centers and component costs.
Analysts expect continued AI investments to shape monetization rather than immediate revenue streams.
Meta signaled ongoing workforce adjustments, including layoffs of about 10% of staff and halted hiring for 6,000 roles.
Second-quarter revenue guidance sits between $58 billion and $61 billion, roughly in line with expectations.
Meta reported a quarterly net income of $26.8 billion, aided by an unusual tax benefit.
Meta reaffirmed its AI strategy, including unveiling Muse Spark and plans for personal AI features.
The market view remained positive about the tech sector due to AI infrastructure demand despite macro headwinds.

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