“This reflects our expectations for higher component pricing this year and, to a lesser extent, additional data center costs to support future-year capacity.”

In context

“o move more quickly while also helping to offset the substantial investments we are making. Moving to our financial outlook. We expect second quarter 2026 total revenue to be in the range of $58 to $61 billion. Our guidance assumes foreign currency is an approximately 2% tailwind to year-over-year total revenue growth based on current exchange rates. Turning to the expense and CapEx outlooks. We expect full year 2026 total expenses to be in the range of $162 to $169 billion, unchanged from our prior outlook. We continue to expect to deliver operating income this year that is above 2025 operating income. We anticipate 2026 capital expenditures, including principal payments on finance leases, to be in the range of $125 to $145 billion, increased from our prior range of $120 to $135 billion. This reflects our expectations for higher component pricing this year and, to a lesser extent, additional data center costs to support future-year capacity. Absent any changes to our tax landscape, we expect our tax rate for the remaining quarters of 2026 to be between 13%–16%. Finally, we continue to monitor active legal and regulatory matters, including headwinds in the EU and the US that could significantly impact our business and financial results. For example, we continue to see scrutiny on youth-related issues and have additional trials scheduled for this year in the US, which may ultimately result in a material loss. In closing, Q1 was a solid start to the year, with strong execution across our core ads and engagement initiatives. We are also making exciting progress on our AI research and product efforts and expect to build that momentum over the course of this year. With that, Krista, let us open up the call for questions. Operator:”