London Daily

Focus on the big picture.
Tuesday, Mar 03, 2026

Facebook owner Meta’s profits exceed expectations

Facebook owner Meta’s profits exceed expectations

Meta, Facebook and Instagram's parent firm, has reported a profit of $5.7bn (£4.6bn) for the first quarter of this year, surpassing expectations for a period in which many jobs were cut.

It said artificial intelligence (AI) was "driving good results" across its business.

Total revenue was $28.6bn, while the number of people on Facebook every month rose to just under three billion.

"Our community continues to grow," said chief executive Mark Zuckerberg.

"We're also becoming more efficient so we can build better products faster, and put ourselves in a stronger position to deliver our long-term vision," he said.


'No longer behind in building AI'


Meta sees "an opportunity to introduce AI agents to billions of people in ways that will be useful and meaningful," Mr Zuckerberg told investors.

While offering few details, he said that Meta was "exploring chat experiences in WhatsApp and Messenger, visual creation tools for posts in Facebook and Instagram and ads, and over time video and multimodal experiences as well."

The company intends to commercialise its privately-run generative AI, joining Google in finding practical applications for the tech - because the industry is awash with hype around its capabilities.

Meta established Facebook's AI Research laboratory in 2013, but has not made big inroads in this area yet, as some other big tech firms - such as Microsoft - have done.

But Mr Zuckerberg insisted Meta was "no longer behind in building our AI infrastructure" and said generative AI Meta products, which can instantly create sentences and graphics, would be released in the coming months.

He added the move would not be at the cost of the metaverse, Meta's virtual reality project.

Meta's Reality Labs division reported a net loss of $4bn last quarter, and the company said it expected "operating losses to increase year over year in 2023".

However, Mr Zuckerberg said the "narrative that has developed that Meta is moving away from the metaverse" was "not accurate", adding it still planned to reveal the next Quest VR headset later this year.


Cost-cutting pays off


The positive financial figures coincide with a period where Meta has slashed jobs and projects. The aim was to turn 2023 into "a year of efficiency," said Mr Zuckerberg.

Meta has been the most aggressive US big tech firm when it comes to downsizing, shedding almost a quarter of its global workforce, more than 20,000 jobs, in just a few months.

"The year of efficiency is off to a stronger than expected start for Meta," said Insider Intelligence principal analyst, Debra Aho Williamson.

"In this economic environment - and after the disaster that was 2022 - 3% year over year revenue growth is an accomplishment," she added.

Mr Zuckerberg has called 2022 "a humbling wake-up call" and said it would be wise to "prepare ourselves for the possibility that this new economic reality will continue for many years".

Ben Barringer, from investment management firm Quilter Cheviot, said: "You have to take your hat off to Mark Zuckerberg and Meta given the transformation of the business over the last six months.

"The 'year of efficiency' Zuckerberg likes to talk about is bearing fruit. These results are a strong beat on the expectations and, given the improving macro backdrop, Meta should continue to recover well."

Newsletter

Related Articles

0:00
0:00
Close
UK Arrests Prominent Figures Linked to Epstein Network as Questions Mount Over US Action
Trump Says UK ‘Took Far Too Long’ to Approve Use of Airbases for Iran Strikes
Scope of Britain’s Role in the Expanding Middle East Conflict Comes Under Scrutiny
Trump Says He Is ‘Very Disappointed’ in Starmer Over Iran Comments
U.S. Embassy in Riyadh Struck by Drones Amid Escalating Iran Conflict
Starmer Confronts Strategic Test After Drone Strike Near British Base in Cyprus
Rolls-Royce Chief Signals Openness to Germany Joining UK-Led Fighter Jet Programme
UK Stocks Slip as Escalating Iran Conflict Triggers Global Market Selloff
UK Overhauls Asylum System to Make Refugee Status Temporary
Starmer Warns of ‘Reckless’ Iranian Strikes Amid Escalating Regional Tensions
British Base in Cyprus Targeted as Drones Intercepted Amid Expanding Iran Conflict
Starmer Diverges from Trump on Iran Strategy, Rejects ‘Regime Change from the Skies’
U.S. and Israel Intensify Strikes on Iran as Conflict Expands to Lebanon and Gulf States
Violent Pro-Iranian Protesters Storm U.S. Consulate in Karachi
Missile Debris Sparks Fires at Dubai’s Jebel Ali Port Near Palm Jumeirah
Iran Strikes U.S. Fifth Fleet Headquarters in Bahrain Amid Wider Gulf Retaliation
When the State Replaces the Parent: How Gender Policy Is Redefining Custody and Coercion
Bill Clinton Denies Knowing Woman in Hot Tub Photo During Closed-Door Epstein Deposition
Former U.S. President Bill Clinton Testifies on Ties to Jeffrey Epstein Before Congressional Oversight Committee
Dyson Reaches Settlement in Landmark UK Forced Labour Case
Barclays and Jefferies Shares Fall After UK Mortgage Lender Collapse Rekindles Credit Market Concerns
Play Exploring Donald Trump’s Rise to Power by ‘Lehman Trilogy’ Author to Premiere in the UK
Man Arrested After Churchill Statue Defaced in Central London
Keir Starmer Faces Political Setback as Labour Finishes Third in High-Profile By-Election
UK Assisted Dying Bill Set to Fall Short in Parliament as Regional Initiatives Gain Ground
UK Defence Ministry Clarifies Position After Reports of Imminent Helicopter Contract
Independent Left-Wing Plumber Secures Shock Victory as Greens Surge in UK By-Election
Reform UK Refers Alleged ‘Family Voting’ Incidents in By-Election to Police
United Kingdom Temporarily Withdraws Embassy Staff from Iran Amid Heightened Regional Tensions
UK Government Reaches Framework Agreement on Release of Mandelson Vetting Files
UK Police Contracts With Israeli Surveillance Firms Spark Debate Over Ethics and Oversight
United Airlines Passenger Hears Cockpit Conversations After Accessing In-Flight Audio Channel
Spain to Conduct Border Checks on Gibraltar Arrivals Under New Post-Brexit Framework
Engie Shares Jump After $14 Billion Agreement to Acquire UK Power Grid Assets
BNP Paribas Overtakes Goldman Sachs in UK Investment Banking League Tables
Geothermal Project to Power Ten Thousand Homes Marks UK Renewable Energy Milestone
UK Visa Grants Drop Nineteen Percent in 2025 as Migration Controls Tighten
Barclays and Jefferies Among Banks Exposed to Collapse of UK Mortgage Lender MFS
UK Asylum Applications Edge Down in 2025 Despite Rise in Small Boat Crossings
Jefferies Reports Significant Exposure After Collapse of UK Lender MFS
FTSE 100 Reaches Fresh Record Highs as Major Share Buybacks and Earnings Lift London Stocks
So, what's happened is, I think, government policy, not just under Labour, but under the Conservatives as well, has driven a lot of small landlords out of business.
Larry Summers, the former U.S. Treasury Secretary, is resigning from Harvard University as fallout continues over his ties to Jeffrey Epstein.
U.S. stocks ended higher on Wednesday, with the Dow gaining about six-tenths of a percent, the S&P 500 adding eight-tenths of a percent, and the tech-heavy Nasdaq climbing roughly one-and-a-quarter percent.
From fears of AI-fuelled unemployment to Big Tech's record investment, this is AI Weekly.
Apple just dropped iOS 26.4.
US Lawmakers Seek Briefing from UK Over Reported Encryption Order Directed at Apple
UK Business Secretary Calls on EU to Remove Trade Barriers Hindering Growth
Legal Pathways for Removing Prince Andrew from Britain’s Line of Succession Examined
PM Netanyahu welcome India PM Narendra Modi to Israel
×