Meta Platforms Inc: Significant Increase in Capital Expenditure
Meta Platforms Inc has announced a forecast for capital expenditure to surge to a range of $115 billion to $135 billion by 2026, marking a substantial rise from the $72.2 billion expenditure in 2025. This surge is attributed to the company’s commitment to enhance investment in data centres and specialised hardware aimed at facilitating advanced artificial intelligence (AI).
Mark Zuckerberg’s Vision for AI
During a recent earnings call, Chief Executive Officer Mark Zuckerberg shared with analysts that 2026 is expected to be a pivotal year for Meta’s aspirations in AI. He emphasised the concept of “personal superintelligence”, which refers to machines potentially exceeding human cognitive capacities, as a fundamental aspect of Meta’s strategic direction.
Impressive Financial Performance
The owner of Facebook and Instagram reported fourth-quarter revenue of $59.89 billion and a total of $200.97 billion for the entirety of 2025. This reflects significant year-over-year growth rates of 24% and 22% respectively.
Restructuring Efforts Amid AI Investments
Despite the substantial investment in AI, Meta is also streamlining certain legacy operations. The company has confirmed that approximately 10% of its workforce within the Reality Labs division, which manages metaverse projects, will be reduced as the focus transitions towards AI-driven wearable technology.
Revenue Projections for Early 2026
Chief Financial Officer Susan Li indicated that Meta projects first-quarter revenue for 2026 to fall between $53.5 billion and $56.5 billion. She noted, “We anticipate first quarter 2026 total revenue to be within the $53.5 to $56.5 billion range. Our guidance takes into account foreign currency as roughly a 4% advantage to year-over-year total revenue growth based on current exchange rates.”
Financial Forecasts and Expenses
Meta has also estimated total expenses for the full year 2026 to be in the bracket of $162 billion to $169 billion.
Current Headcount and Financial Obligations
As of December 31, 2025, Meta’s workforce totalled 78,865, reflecting a 6% increase from the previous year. Additionally, the long-term debt stood at $58.74 billion.
Rising Costs Linked to AI Development
In the fourth quarter, total costs and expenses surged by 40% year over year to $35.15 billion. For the complete year of 2025, these costs grew by 24%, totalling $117.69 billion, a clear indication of the increasing expenses involved in scaling AI infrastructure.