Overview
- Revenue rose 26% year over year to $51.2 billion, reflecting continued strength in the advertising business.
- Earnings per share fell 83% to $1.05 after a $15.93 billion non-cash income tax charge and faster-growing costs.
- Management signaled that AI-related capital spending is increasing and will accelerate further in 2026.
- Engagement improved, with time spent up 5% on Facebook, 10% on Threads, and Instagram video time up 30%, while daily active users across apps reached 3.5 billion, up 8%.
- The stock dropped about 10% following the update as investors questioned the payoff timeline for AI investments, with some market commentary presenting the pullback as a buying opportunity.