Meta and Google both delivered strong advertising revenue growth in Q1 2026, highlighting the continued dominance of digital ads in the global economy.

Google saw ad revenue rise 15% to $77.25 billion, while Meta posted a sharper 33% jump to $55 billion, fueled by strong engagement across Facebook and Instagram.

However, investors are increasingly focused on the cost side of the story. Meta is significantly ramping up spending on AI infrastructure, with projected capital expenditures of up to $145 billion this year. That has raised concerns about profitability and long-term stability.

Google is also investing heavily in AI but benefits from a strong cloud business, which grew 63% in the same quarter, helping balance out its spending.

Market analysts say the competition between the two giants could intensify if Meta’s ad momentum overtakes Google later this year.