"Investors have been worried about Meta's capital expenditures (capex). However, the company did not back down, upping it to a range of $115 billion to $135 billion for 2026. That's a big jump from the already hefty $72.2 billion it spent in 2025. The funds will mostly be directed toward its artificial intelligence (AI) efforts. However, it did say that losses at its Reality Labs division will be similar to those in 2025 and should peak this year."
"Meanwhile, Meta's core business continues to hum along. Revenue for the quarter jumped 24% year over year to $59.9 billion, while adjusted EPS rose by 11% to $8.88. Analysts were expecting revenue of $58.6 billion and adjusted EPS of $8.23, as compiled by LSEG. Advertising revenue also jumped 24%, coming in at $58.1 billion. Revenue at Reality Labs, which is home to Meta's metaverse and its augmented reality headsets and smart glasses, fell 12% year over year to $955 million."
Meta increased capital expenditures to a range of $115 billion to $135 billion for 2026, up from $72.2 billion in 2025, with most funds directed toward artificial intelligence initiatives. Quarterly revenue rose 24% year over year to $59.9 billion and adjusted EPS increased 11% to $8.88, both exceeding expectations. Advertising revenue grew 24% to $58.1 billion, driven by an 18% increase in ad impressions and a 6% rise in ad prices. Family daily active people rose 7% to 3.58 billion. Reality Labs revenue fell 12% to $955 million and posted a $6 billion loss. Q4 revenue guidance implies 26%–34% growth.
Read at The Motley Fool
Unable to calculate read time
Collection
[
|
...
]