Meta Reports Strong Q1 Earnings Despite 8000 Layoffs AI Revenue Surges 72%

Meta beat Wall Street expectations with $41.2 billion in Q1 revenue (up 21% YoY) and delivered record profits, driven by AI-powered ad tools and Reels growth. The company confirmed the ongoing 8,000 layoffs while increasing full-year AI infrastructure capex guidance to $65–70 billion.

Details: Zuckerberg highlighted that Llama 4 and Muse Spark models are now powering over 40% of ad targeting and content recommendations.

Impact: Investors rewarded the stock with a +4.8% jump. This reinforces that AI efficiency measures are paying off, even as the company aggressively hires in core AI areas.