Even as continues make money hand over fist, the tech giant is set to make a large round of layoffs to optimize operations — and as it continues to plow billions into AI projects.

Meta, the parent of Facebook, Instagram and WhatsApp, reported revenue of $56.3 billion for the first quarter of 2026 as ad sales were strong in the period. That’s up 33% from the year-prior period. Net income was $26.8 billion, up 61%, translating to $10.44 per share.

Last week Meta told employees that it plans to lay off 8,000 staffers, about 10% of its workforce, in May and will close 6,000 open roles. The cuts are designed to improve efficiency and help “offset” Meta’s massive investments in AI.

Meta expects 2026 capital spending to be $125 billion to $145 billion, increased from its prior range of $115 billion-$135 billion. That reflects “our expectations for higher component pricing this year and, to a lesser extent, additional data center costs to support future year capacity,” CFO Susan Li said in the earnings announcement.

Overall, Meta said daily active users across all of its apps averaged 3.56 billion for March 2026, up 4% year-over-year but down from 3.54 billion three months prior. The decline in daily active users “was driven by internet disruptions in Iran, as well as a restriction on access to WhatsApp in Russia,” the company said.

The company expects Q2 2026 revenue to be $58 billion to $61 billion.

“We had a milestone quarter with strong momentum across our apps and the release of our first model from Meta Superintelligence Labs,” Mark Zuckerberg, Meta co-founder and CEO, said in a statement. “We’re on track to deliver personal superintelligence to billions of people.”

Meta’s results included an $8.03 billion income tax benefit recognized in Q1 of 2026, which partially offset the $15.93 billion non-cash tax charge recorded in Q3 2025 upon enactment of Trump’s One Big Beautiful Bill Act.

For Q1, analysts had projected Meta revenue of $55.45 billion and earnings of $6.79 per share, per LSEG Data & Analytics.

In reporting its latest quarterly results, Meta said it continues to monitor active legal and regulatory matters, including “headwinds in the EU and the U.S. that could significantly impact our business and financial results.” The company said, “For example, we continue to see scrutiny on youth-related issues and have additional trials scheduled for this year in the U.S., which may ultimately result in a material loss.”

Earlier Wednesday, the European Commission said it has preliminarily found Meta’s Instagram and Facebook in breach of the Digital Services Act (DSA) for “failing to diligently identify, assess and mitigate the risks of minors under 13 years old accessing their services.”