Meta Raises 2026 CapEx Outlook to $125B–$145B, Shares Drop Over 5%
Meta lifted its 2026 capital expenditure guidance to $125 billion–$145 billion from $115 billion–$135 billion, exceeding the $125.26 billion Street estimate and triggering a 5% drop in after-hours trading. The company reiterated full-year expenses of $162 billion–$169 billion and forecast Q2 revenue of $58 billion–$61 billion, slightly below consensus.
1. CapEx Guidance Increase
Meta lifted its 2026 capital expenditure guidance to $125 billion–$145 billion from $115 billion–$135 billion, citing rising component costs and expanded data center investments. Shares fell over 5% in after-hours trading following the announcement.
2. Expense and Revenue Outlook
The company maintained its full-year expense forecast at $162 billion–$169 billion and projected Q2 2026 revenue of $58 billion–$61 billion, with the midpoint slightly under the $59.6 billion consensus. This guidance balances significant investment with tempered top-line expectations.
3. Q1 Earnings and AI Investments
In Q1, Meta reported EPS of $10.44 on revenue of $56.31 billion, well above analyst forecasts of $6.65 and $55.52 billion. Leadership highlighted progress on AI infrastructure, including the debut model from Meta Superintelligence Labs, reinforcing its long-term AI strategy.