Meta lifts 2026 CapEx guidance to $125-145B, JPMorgan cuts target to $725
Meta Platforms raised its 2026 capital expenditure guidance by $10 billion to $125-145 billion and posted 33% year-on-year revenue growth, boosting CPU demand. JPMorgan downgraded Meta to Neutral, cut its price target from $825 to $725 and forecast negative free cash flow of $4 billion in 2026.
1. CapEx Guidance Raise and Revenue Growth
Meta Platforms increased its 2026 capital expenditure guidance by $10 billion to a $125-145 billion range, reflecting plans to expand AI infrastructure. The company reported 33% year-on-year revenue growth driven by AI-powered ad stack optimizations, contributing to heightened demand for semiconductors and CPUs.
2. JPMorgan Downgrade
JPMorgan downgraded Meta from Overweight to Neutral and reduced its price target from $825 to $725. The firm cited heavy AI infrastructure spending, limited visibility into the company’s AI product pipeline, and projected negative free cash flow of $4 billion in 2026 and $24 billion in 2027.