Meta Platforms (META) is set to report first quarter earnings after the market close on Wednesday, with investor focus likely to center on the company’s massive AI investments and recent staff cuts aimed at reshaping the organization for the AI age.

The company is expected to report adjusted earnings per share (EPS) of $8.15 on revenue of $55.5 billion, according to Bloomberg estimates. In January, the company guided to first quarter revenue of $53.5 billion-$56.5 billion.

Meta stock is up about 2% this year, against a 6% gain for the Nasdaq Composite (^IXIC).

In the first quarter last year, Meta reported EPS of $6.43 on revenue of $42.3 billion. In that report, the company said it expected total expenses in 2025 to reach $113 billion to $118 billion, with capital expenditures forecast at $64 billion to $72 billion.

By the end of the year, Meta’s realized expenses hit $117.7 billion, and its capital expenditures tallied $72.2 billion. In January, the company said it expected 2026 expenses to come in between $162 billiont to $169 billion and its capital expenditures to reach $115 billion to $135 billion.

The extent to which the company updates these numbers will be the key for investors on Wednesday. Combined with peers Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOG, GOOGL), the so-called big four hyperscalers leading the AI investment cycle pledged in January to spend upwards of $650 billion in 2026.

Last week, Meta announced plans to cut 8,000 workers — or 10% of its workforce — and take down 6,000 open roles. In a memo announcing these cuts, Meta cited a continued efficiency push and a need to “offset the other investments we’re making.”

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