"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."
"Revenue for the quarter jumped 24% year over year to $59.9 billion, while adjusted EPS rose by 11% to $8.88. 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. Operating income from its social media apps increased by 9% to $30.8 billion, while Reality Labs posted a loss of $6 billion versus $5 billion a year earlier."
Meta raised 2026 capital expenditure guidance to $115–$135 billion from $72.2 billion in 2025, allocating most funds to AI initiatives while projecting Reality Labs losses to remain similar and peak this year. Q4 revenue grew 24% year over year to $59.9 billion and adjusted EPS increased 11% to $8.88. Advertising revenue rose 24% to $58.1 billion. Reality Labs revenue declined 12% to $955 million and recorded a $6 billion loss versus $5 billion the prior year. Operating income from social apps climbed 9% to $30.8 billion. Shares surged and growth is expected to accelerate in Q1, with valuation still attractive.
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