"Meta told to brace for a much more expensive 2026 as it pours money into the compute and data centers needed to power its AI push. The company said it expects capital expenditures in 2026 to land between $115 billion and $135 billion - up to almost double the $72 billion it spent in 2025. Meta's chief financial officer, Susan Li, said the increased expenditure will support Meta Superintelligence Labs' efforts and its core business."
"Li also warned that Meta's overall costs are set to climb fast. The company expects total 2026 expenses of $162 billion to $169 billion, with most of the increase coming from "infrastructure costs," including "third-party cloud spend, higher depreciation, and higher infrastructure operating expenses." And Meta isn't just buying more machines - it's also paying for people to run them."
"Meta's earnings sent a clear signal to Wall Street on Wednesday: while its core advertising engine is still firing on all cylinders, the price tag for CEO Mark Zuckerberg's AI ambitions will skyrocket in 2026. The company reported $59.89 billion in revenue for the fourth quarter of 2025, topping Wall Street's forecasts. Meta's stock jumped as high as 10% in after-hours trading."
Meta reported $59.89 billion in revenue for the fourth quarter of 2025, topping forecasts, and its stock rose as much as 10% in after-hours trading. The company plans $115 billion to $135 billion in capital expenditures in 2026, up from $72 billion in 2025, largely for compute and data centers to power AI. Total 2026 expenses are expected at $162 billion to $169 billion, driven mainly by infrastructure costs such as third-party cloud spend, higher depreciation, and higher infrastructure operating expenses. Compensation is the second-largest contributor to expense growth. Meta continues to derive most revenue from advertising while expanding AI across Instagram, WhatsApp, Facebook, and virtual and augmented reality products used by more than 3.5 billion people daily.
Read at Business Insider
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