London Daily

Focus on the big picture.
Saturday, Aug 01, 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
Finland Deploys Commercial-Scale Thermal Batteries Using Crushed Rock to Store Renewable Grid Energy
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Sainsbury Agrees to Sell Argos in £120 Million Deal to Private Consortium
High Court Clears Way for Construction of Chinese Embassy at Royal Mint Court
UK Fuel Prices Climb to Multi-Month Highs as Strait of Hormuz Tensions Disrupt Oil Supplies
Severe Summer Drought and Record Heat Put UK Harvests at Risk
Prime Minister Andy Burnham Faces Labour Backbench Opposition Over Potential Support for New North Sea Oil and Gas Drilling
Bank of England Warns Inflation Will Stay Above 3% as Middle East Energy Shock Prolongs Cost-of-Living Pressures
Andy Burnham has Announces Plans to Redistribute Income Tax Revenue to English Mayors
Early-Release Scheme Faces Fresh Scrutiny as Reoffending and Prison Recalls Rise
Police Phone Checks Followed Report on Murder of MI5 Agent Inside Sinn Féin
Archbishop of Canterbury Reaffirms £100 Million Reparative Justice Fund During Ghana Visit
Charities Allege French Police Used Tear Gas Against Channel Migrants
Norwegian Teenager Convicted Over Iran-Linked Murder Plot in Britain
Christian Organisations File Charity Complaints Against Amnesty International UK
Ofgem Tightens Grid Connection Rules for New Data Centres
FTSE 100 Reaches Record High Despite Global Technology Sell-Off
Millions of UK Households Urged to Check Eligibility for Winter Energy Discount
Labour Restores Parliamentary Whips to Diane Abbott and Joani Reid
UK Supreme Court to Hear Challenge Over Palestine Action Ban
UK Commits More Than £8.4 Billion to Dreadnought Nuclear Submarine Programme
England Declares Severe Drought as Wildfire Burns Near Sizewell Nuclear Site
Bank of England Holds Interest Rates at 3.75% as Middle East Tensions Fuel Inflation Risks
Drought Status Extended Across All of Wales as Heat and Dry Weather Deepen Environmental Strain
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
UK Business Confidence Climbs to Four-Month High
Greater Manchester Gains Expanded Powers Under Regional Funding Reforms
UK Supreme Court to Hear Appeal Over Palestine Action Terror Ban
Shell's Quarterly Profit Doubles to Nearly $10 Billion on Higher Energy Prices
UK Government Removes VAT From Household Electricity Bills
Exceptional Drought Grips Half of England as Wildfire Threatens Sizewell
Bank of England Holds Interest Rates at 3.75% as Inflation Risks Persist
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The chief executive of the popular gaming company laid off many employees and his pay rose to 38 million dollars
UK Employment Holds Steady as Wage Growth Remains Moderate
England to Introduce Artificial Intelligence into Secondary School Curriculum
Wales Launches £1.2 Billion Industrial Regeneration Programme
High Court Upholds UK Digital Surveillance Framework
Northern Ireland Reaches Budget Agreement on Infrastructure and Public Sector Pay
Home Office Expands Digital Border Checks Nationwide
UK Approves Major North Sea Wind and Carbon Capture Project
The World's Most Terrifying Smartphone: Recording, Documenting, and Reporting to the Regime
Scotland Approves Major Renewable Energy Expansion
UK and United States Sign AI and Semiconductor Cooperation Pact
UK Treasury Tightens Fiscal Controls After Gilt Market Volatility
Bank of England Holds Interest Rates at 4.5%
UK Unveils £10 Billion NHS Funding Overhaul and Workforce Reform
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
UK: Former Football Association Leaders Call for World Cup Boycott Over FIFA Privatization Plan
Forbidden Love: China severs millions from their virtual partners
×