Meta Platforms META is benefiting from its continued push to broaden its virtual reality (VR) portfolio and strengthen the ecosystem around Reality Labs. In the second quarter of 2026, Reality Labs revenues increased 16% year over year to $431 million, driven by Meta Platforms’ continued spending on augmented and virtual reality products. The expanding wearable portfolio is strengthening Meta Platforms’ positioning against AppleAAPL and Alphabet GOOGL, which are also investing heavily in AI-enabled wearable devices.
Meta Platforms’ growing smart-glasses portfolio remains a key catalyst. The company recently unveiled Meta VR Glasses, a roughly 100-gram virtual-reality device designed for entertainment, work and gaming. The glasses feature a 5K Infinite Display with micro-OLED panels, Dolby Vision, and Dolby Atmos, powered by Qualcomm’s Snapdragon Reality Elite processor. The device integrates Meta AI and supports eye, voice and hand-gesture controls. Meta VR Glasses use a two-part design, with compute, battery and storage housed in a separate tethered puck, helping keep the headset lightweight.
Meta VR Glasses are also the first IMAX Enhanced-certified VR device, offering 3D movies and more than 100 immersive live U.S. sports events annually. The device additionally supports multi-screen workspaces and more than 75 games at launch. Meta VR Glasses will go on sale in spring 2027 for $1,299.99.
However, Meta Platforms’ broader VR hardware business remains uneven. Reality Labs’ second-quarter growth was partially offset by lower Quest headset sales, even as AI glasses revenues grew strongly. While Reality Labs remains loss-making, the expanding wearable portfolio could provide Meta Platforms with another distribution platform for Meta AI, personal agents and immersive services. The upcoming Meta VR Glasses, scheduled to launch in spring 2027, could further broaden the segment’s addressable market across entertainment, gaming and productivity.
How Competitors Fare Against META
Meta Platforms is facing stiff competition from competitors like Apple and Alphabet, both of which are also strengthening their VR portfolio.
Apple is strengthening its VR portfolio through continued enhancements to Apple Vision Pro, expanding its utility beyond entertainment and productivity into accessibility-focused applications. The company is adding features such as eye-based control for power wheelchair drive systems, broadening Vision Pro’s use cases and ecosystem appeal.
Alphabet is strengthening its VR/XR portfolio through Android XR. In May 2026, Google unveiled Gemini-powered Android XR smart glasses, developed with Samsung, Gentle Monster and Warby Parker, with audio glasses set to launch in fall 2026. The glasses will support hands-free navigation, messaging, photos, translations and app-based tasks through Gemini.
