Meta Raises 2026 Capex to $125–145B After 33% Revenue Surge
META•Meta’s Q1 revenue jumped 33% to $56.3 billion with net income climbing 61% and operating margin holding at 41%. Management raised 2026 capex to $125–145 billion—nearly double 2025’s $72.2 billion—and plans 8,000 layoffs plus custom silicon rollout to curb hardware costs.
1. Q1 Financial Highlights
Meta delivered its fastest revenue growth since 2021, with Q1 sales up 33% to $56.3 billion. Operating margin remained robust at 41%, while net income rose 61% year-over-year on increased ad impressions and higher price per ad.
2. 2026 Capex Increase and Cost Management
Meta boosted its 2026 capital expenditure range to $125–145 billion, up from $115–135 billion, citing higher memory prices and expanded data center needs. To manage this spending surge, it will cut about 8,000 jobs and freeze roughly 6,000 open roles.
3. AI Investment and Silicon Strategy
The company launched Muse Spark, aiming to deliver personal AI assistants at scale, as part of its superintelligence push. Meta is deploying over 1 GW of custom silicon alongside AMD chips to reduce reliance on Nvidia and lower hardware costs.
