Meta and Microsoft both blew their data center budgets last quarter. Wall Street is only mad at one of them.

"Meta reported capex of $22.1 billion for the fourth quarter and $72.2 billion for the year, up from 2024's $39.2 billion. That number will climb in 2026 - the company estimates capex will be in the range of $115 billion to $135 billion for the year, driven by increased spending on Meta SuperIntelligence Labs, the company's big bet on speeding up AI model development."

"Microsoft logged $37.5 billion in capex for the quarter, up 66% from one year ago. Most of that spend went toward CPUs and GPUs, the powerful computing chips that run AI workloads. The company said the spending was necessary to support fast-growing demand for its cloud and AI business. Microsoft's revenue was 81.3 billion for the quarter, up 17% from the previous year. Meta reported $55.9 billion in revenue for the fourth quarter and $200.1 billion for all of 2025."

"Both Meta and Microsoft reported higher-than-expected capex. While both companies beat revenue expectations, Microsoft's stock sank more than 6% after-hours, while Meta's stock jumped as high as 9%. Big Tech's spending has risen sharply in the last two years, driven by investments in massive AI data centers. Wall Street has started to question when those investments will pay off, and analysts are giving some companies a much harder time than others."

Meta and Microsoft reported higher-than-expected capital expenditures while both beat revenue forecasts, yet market reactions diverged sharply. Meta logged $22.1 billion in Q4 capex and $72.2 billion for 2025, up from $39.2 billion in 2024, and projects $115–$135 billion for 2026 to fund Meta SuperIntelligence Labs. Microsoft recorded $37.5 billion in quarterly capex, up 66% year over year, primarily for CPUs and GPUs to support cloud and AI demand. Microsoft posted $81.3 billion in revenue, up 17% year over year; Meta reported $55.9 billion in Q4 revenue and $200.1 billion for 2025. Analysts and investors questioned capital intensity, penalizing Microsoft while rewarding Meta.

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