US EditionMeta Reports Record Q4 Revenue and Raises 2026 AI Investment Outlook
Meta reported $59.9 billion revenue in Q4, raised 2026 capital spending to $115-$135 billion to boost AI investments and infrastructure, driven by advertising success.
- On Wednesday, Microsoft Corp. and Meta Platforms Inc. will post earnings after the close to show whether heavy AI spending is delivering returns; they are the first of Corporate America's four biggest AI spenders to report.
- Wall Street investors are increasingly worried about AI spending as Microsoft shares have slumped 11% and Meta shares dropped around 10% since Oct. 29.
- Cloud strain and AI-related revenue gains were central to the quarter's details as Microsoft said Azure demand significantly outpaced capacity in fiscal Q1 and Microsoft Cloud revenue topped over $50 billion with a $7.6 billion net income boost from OpenAI.
- Supplier stocks and chipmakers gained on signs of rising data-center demand as Seagate Technology Holdings Plc's outlook sent its stock up 10% Wednesday, boosting Western Digital Corp. and Sandisk Corp., while AI spending supports Nvidia Corp., Broadcom Inc. and TSMC.
- The quartet: Microsoft Corp., Meta Platforms Inc., Alphabet Inc., Amazon.com Inc., are expected to spend 505 billion this year, with data‑centre costs rising nearly 50%, Cofsky said.
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