"Meta Platforms raised its full-year 2026 CapEx guidance to $125 billion to $145 billion, up $10 billion on both ends from the January range."
"CEO Mark Zuckerberg defended the spend, stating, 'We had a milestone quarter with strong momentum across our apps and the release of our first model from Meta Superintelligence Labs.'"
"The company cited higher component pricing and additional data center costs to support future year capacity for the increase."
"Meta Platforms also flagged headwinds in the EU and the U.S. that could significantly impact our business and financial results."
Meta Platforms' shares dropped 8% after announcing Q1 FY2026 earnings that beat expectations but included a significant increase in capital expenditure guidance. The company reported Q1 revenue of $56.31 billion and GAAP earnings per share of $10.44. The raised CapEx guidance for 2026 now stands at $125 billion to $145 billion, raising concerns about AI infrastructure spending. CEO Mark Zuckerberg defended the increased spending, citing strong momentum and new product releases. Additionally, regulatory challenges in the EU and U.S. were highlighted as potential risks to financial results.
Read at 24/7 Wall St.
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