KEY POINT
- Meta exceeded Q4 revenue and EPS forecasts, signaling strong demand for its advertising platforms.
- The company plans a record capital expenditure range of $115 $135 billion in 2026 to bolster AI capabilities.
- Meta is restructuring certain segments, including the metaverse division, to prioritize AI integrated products like smart glasses.
Meta Platforms Inc. reported stronger than expected fourth quarter earnings and unveiled ambitious plans to expand its artificial intelligence infrastructure in 2026, sending shares higher in after hours trading.
For the quarter ending December 31, Meta posted revenue of $59.9 billion, beating analyst forecasts of $58.4 billion, and reported earnings per share of $8.88, above the $8.16 expected. Following the announcement, shares of Meta jumped nearly 10 percent.
The company also forecast capital expenditures between $115 billion and $135 billion for 2026, nearly doubling the approximately $72 billion spent in 2025.
The investment is intended to support Meta’s AI initiatives, including compute infrastructure, research and development, and new product development.
Meta’s results reflect resilience in advertising revenue while highlighting the company’s focus on artificial intelligence as a driver of future growth.
Investors reacted positively to both the earnings beat and the scale of planned investment, viewing it as a strategic commitment to maintain leadership in AI.
Meta has increasingly prioritized AI development over the past several years, directing resources to Superintelligence Labs and acquiring stakes in AI startups such as Scale AI.
These initiatives aim to improve Meta’s capabilities in machine learning, content moderation, recommendation systems, and immersive experiences for users.
The company has also faced challenges, including delays with its latest Llama 4 Behemoth AI model and losses in its Reality Labs division, which reported a $6 billion operating loss in Q4. Despite these issues, Meta continues to push forward with AI-driven products and experiences.
Michael Levin, senior technology analyst at Atlantic Data Insights, said, “Meta’s planned spending reflects an industry wide trend of building proprietary AI infrastructure capable of competing with other hyperscale tech companies.”
Dr. Laura Chen, associate professor of business economics at the University of Chicago Booth School of Business, added, “Investing at this scale positions Meta to capitalize on long term AI opportunities, though the company must balance short term profitability with ambitious growth initiatives.”
| Metric | Q4 2025 | 2025 Full Year | 2026 Guidance |
|---|---|---|---|
| Revenue | $59.9B | ~$201B | — |
| EPS | $8.88 | — | — |
| Capital Expenditure | ~$22B | ~$72B | $115–$135B |
| Stock Reaction | +10% AH | — | — |
Susan Li, Meta’s chief financial officer, stated, “Our 2026 capital plan supports compute growth for AI and long-term product innovation.”
Advertisers like Peter Sullivan, CMO at Silverline Media Group, said, “AI tools from Meta are improving ad performance, and clients are showing strong interest in next-generation solutions.”
Meta’s record investment indicates a continued shift toward AI driven platforms, which could define its growth trajectory. While near-term profit margins may face pressure, the company’s focus on advanced infrastructure and AI talent suggests long term strategic positioning.
Meta’s fourth quarter earnings demonstrate strength in its advertising core while signaling a decisive pivot toward AI expansion.
The company’s planned capital expenditures in 2026 underscore its commitment to competing at the forefront of artificial intelligence and shaping the next generation of digital products.
Q1: Why did Meta stock rise after Q4 earnings?
Meta stock rose after the company reported stronger-than-expected Q4 earnings and announced a major AI investment plan for 2026.
Q2: How much will Meta spend on AI in 2026?
Meta plans to spend between $115 billion and $135 billion on AI infrastructure and data centers in 2026.
Q3: What is driving Meta’s AI investment strategy?
Meta aims to strengthen its AI capabilities across advertising, smart glasses, and future digital products to stay competitive.