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6d ago

Meta Jumps After Earnings Beat and $115–$135 Billion AI Budget for 2026

Strong ad cash flow reassured investors that Meta can self-fund an aggressive AI build-out next year.

Mark Zuckerberg, chief executive officer of Meta Platforms Inc., wears a pair of Meta Oakley Vanguard AI glasses during the Meta Connect event in Menlo Park, California, US, on Wednesday, Sept. 17, 2025. Meta Platforms, seeking to turn its burgeoning smart glasses into a must-have product unveiled its first version with a built-in screen. Photographer: David Paul Morris/Bloomberg via Getty Images
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Overview

  • Meta reported fourth-quarter revenue of $59.9 billion and EPS of $8.88, up 24% year over year and ahead of forecasts, with AI-enhanced ad targeting cited as a driver.
  • Capital expenditures are guided to $115–$135 billion in 2026 after $72.2 billion in 2025, including about $22.1 billion in Q4, to expand data centers and AI infrastructure.
  • Shares rose roughly 8%–10% from late Wednesday through Thursday morning as investors embraced the beat and spending plan.
  • Meta forecast first-quarter 2026 revenue of $53.5 billion to $56.5 billion and said operating income should surpass 2025 despite higher infrastructure costs.
  • CFO Susan Li said the AI push will be funded largely with cash from the ad business, even as Reality Labs logged a ~$6 billion quarterly loss, and markets contrasted Meta’s momentum with Microsoft’s capex-fueled slump on slower Azure growth.