Meta Platforms reported its financial results for the first quarter ended March 31, 2026.
Following the earnings release, Meta's CEO Mark Zuckerberg and CFO Susan Li hosted an analyst call to discuss the results and answer questions.
Key points from the Q&A session:
Morgan Stanley analyst Brian Nowak inquired about investment levels and key metrics for ensuring return on invested capital (ROIC) from investments in products like Muse. Zuckerberg outlined the company's focus on building leading models and products, scaling them, and then monetizing them. He expressed confidence in Meta's AI lab becoming a world leader and highlighted the quality of the Muse Spark model and Meta AI.
Bernstein Research analyst Mark Shmulik asked about balancing model training, advancing personal super-intelligence goals, and product launches. Zuckerberg described a consistent roadmap with ongoing research and product development cycles. Regarding 2027 capital expenditure, Susan Li noted that planning is dynamic due to evolving compute needs and AI advancements, with flexibility built into infrastructure investments.
Goldman Sachs analyst Eric Sheridan asked about opportunities in extending compute capabilities to consumers and businesses. Susan Li emphasized deepening engagement with existing communities, improving ad experiences, and helping small and medium-sized businesses (SMBs) find customers. She also mentioned growing opportunities for AI agents to enhance productivity and commerce.
Truist Securities analyst Youssef Squali inquired about smart glasses performance and constraints on launching products with other brands like EssilorLuxottica. Susan Li reported strong Q1 demand for smart glasses, with particular interest in Meta Ray-Ban models with Neural bands, indicating consumer readiness for display-enabled glasses. On retail efficiency improvements, she attributed gains to AI-driven productivity tools and ongoing operational focus.
BofA Securities analyst Justin Post asked about the development pace of Muse Spark and the product roadmap. Zuckerberg highlighted the rapid progress of Meta's AI lab and emphasized a focus on quality over speed, aiming for products that meet high usability standards.
Barclays analyst Ross Sandler questioned how new consumer apps like OpenClaw influence Meta's AI strategy. Zuckerberg acknowledged OpenClaw's potential but cited its current complexity, emphasizing Meta's focus on building accessible, scalable AI for billions of users. He also clarified that while self-improvement is critical for model advancement, Meta's primary goal is consumer and business agency, not just developer tools.
Citi analyst Ronald Josey asked about the timeline for personal and business agents. Zuckerberg sees near-term benefits from smarter models, with 2026 being pivotal for establishing agents as a primary interface. Susan Li discussed ongoing improvements to ranking and recommendation systems, including longer content interaction histories and personalized feeds, to boost engagement on Facebook and Instagram.
JPMorgan analyst Doug Anmuth inquired about transitioning from smaller ad models to larger LLMs like Muse Spark and the status of the Manus technology. Susan Li noted no update on Manus but detailed advancements in ad ranking, including adaptive models that leverage large LLMs while maintaining speed and efficiency.
Wells Fargo analyst Kenneth Gawrelski asked about lessons from previous e-commerce efforts and the potential for AI in shopping. Zuckerberg framed shopping as an example of Meta's unique approach to empowering individuals through AI agents tailored to personal goals. Susan Li expressed confidence in continued revenue growth, driven by technical improvements and a disciplined ROI-based investment process.
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