"Meta has committed $115 billion to $135 billion in capital expenditures for 2026, a step up from $69.69 billion in 2025. Total expenses are guided to $162 billion to $169 billion, driven primarily by infrastructure costs and AI talent compensation."
"Q4 saw ad impressions up 18% YoY and average price per ad up 6%, with advertising revenue of $58.14 billion, up 24% YoY. Morningstar expects ad growth nearing 30% this quarter, helped by a 4% FX tailwind."
"Operating margin compressed to 41% from 48% a year earlier, a 700 basis point swing as total costs rose 40% YoY. Management still expects 2026 operating income to exceed 2025."
Meta Platforms will report Q1 2026 earnings on April 29, expecting revenue between $53.5 billion and $56.5 billion. The company has committed $115 billion to $135 billion in capital expenditures for 2026, significantly increasing from 2025. Operating margins have compressed, and management anticipates operating income to exceed 2025 levels. Advertising revenue is crucial, with expectations of nearly 30% growth this quarter. Investors are focused on AI spending and its return on investment, particularly in light of rising costs and the need for ad revenue acceleration.
Read at 24/7 Wall St.
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