Meta 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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91 Articles
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Investors are giving Meta the green light to keep spending big on AI
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Why is the Meta share price rising after Q4 earnings?
The Meta Platforms (NASDAQ:META) share price is rising in extended trading after the companyâs Q4 results on Wednesday (28 January). The question is: why? After its Q3 update, the stock fell as the firmâs huge artificial intelligence (AI) spending made investors nervous. That looks set to continue, but the response has been very different this time. Q4 earnings Metaâs results for the fourth quarter of 2025 were very strong. Revenues were u…
Meta boosts annual capex sharply on superintelligence push, shares surge
Instagram-owner Meta on Wednesday, January 28, boosted its capital spending plans for this year by 73% in the pursuit of “superintelligence,” an effort to offer deeply personalized artificial intelligence to its large social media user base. Shareholders backed CEO Mark Zuckerberg’s ambitious capital outlay, boosting Meta stock 10% in extended trading, as the company posted a 24% surge in advertising revenue — its mainstay — for the quarter ende…
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