Meta Raises 2026 Capex Guidance to $145 Billion on AI Push
Meta Platforms (NASDAQ:META) raised its 2026 capital expenditure guidance to a range of $125-145 billion, up from $115-135 billion. CFO Susan Li cited continued heavy investment in AI data centers. Wall Street punished the stock, fearing overspending.
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Meta Platforms (NASDAQ:META) announced a significant increase in its 2026 capital expenditure guidance during its earnings call, with CFO Susan Li stating the new range is $125-145 billion, up from the prior $115-135 billion. The news sent the stock lower as investors worried about excessive spending on data centers and AI infrastructure.
Key Financial Figures
| Metric | Value |
|---|---|
| 2026 Capex Guidance (Prior) | $115-135 billion |
| 2026 Capex Guidance (New) | $125-145 billion |
| Increase | $10 billion |
Highlights from the Call
Li emphasized that Meta continues to invest heavily in AI infrastructure to capture opportunities in generative AI. The company sees strong demand for its AI services and plans to scale accordingly.
Future Guidance
Meta expects full-year 2026 capital expenditures in the range of $125-145 billion, a $10 billion increase from the previous outlook. No specific revenue or profit guidance was provided.
Impact on the Stock
Meta shares fell in after-hours trading as analysts expressed concern that the company may be overspending on data centers without immediate returns. However, some view the investments as necessary to maintain leadership in the AI race.
What This Means for Investors
The increased capex signals Meta's long-term commitment to AI, but raises questions about the timing of returns. Investors should monitor ROI metrics in the coming quarters, especially as competition with Microsoft and Google intensifies.
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