Meta earnings are here — and the company plans to spend more in the coming year on capex than previously expected.
The company delivered a beat for the first quarter, with revenue of $56.3 billion that topped Wall Street estimates, and earnings per share of $10.44 that handily surpassed estimates.
But the stock was trading down more than 5.5% in after hours trading as the company disclosed that it was raising its guidance for capital expenditures.
“We anticipate 2026 capital expenditures, including principal payments on nance leases, to be in the range of $125- 145 billion, increased from our prior range of $115-135 billion,” Meta said in its release. “This reflects our expectations for higher component pricing this year and, to a lesser extent, additional data center costs to support future year capacity.”
Wall Street has been eyeing a new phase of growth for the social media titan driven by new AI capabilities. Analysts are also bullish on Meta’s AI model, Muse Spark, the first model from Alexandr Wang’s team since the company invested billions into Scale AI to bring Wang in house.
Headed into the analyst call following the results, analysts will be looking to hear more about its AI capex, as Meta is among the most prolific spenders among Big Tech giants. They’ll also be on the lookout for news about AI-driven gains in the ad business and cost savings related to the recent announcement of layoffs at the firm.
Meta heads into earnings with the stock up about 1% year to date. The analyst call scheduled for 5:30 p.m. — follow along for the latest:
