Meta Raises 2026 Capex to $145B, Shares Fall 8.6% on Cash Flow Concerns
Meta Platforms beat Q1 revenue and earnings estimates but guided 2026 capital expenditures at $125bn–$145bn, a $10bn increase led by AI and data-center investments. The stock plunged 8.6% on investor concerns over potential negative free cash flow and margin pressure.
1. Q1 Earnings Beat
Meta beat Q1 revenue and EPS estimates driven by stronger ad pricing and improved Reels monetization, boosting engagement metrics and overall top-line performance.
2. Increased AI and Data Center Capex
The company raised its 2026 capital expenditure forecast by $10bn to a range of $125bn–$145bn, allocating the increase primarily toward AI infrastructure and expanded data-center capacity.
3. Shares Slide Amid Cash Flow Concerns
Investors reacted by sending Meta shares down 8.6%, as the elevated capex outlook raised fears of negative free cash flow and narrower margins over the next two years.