Meta Shares Jump After Q4 Earnings Beat, Company Signals Massive AI Spending in 2026

Meta reported better-than-expected financial results for the fourth quarter, lifting investor sentiment and driving its stock up as much as 10% in after-hours trading. The company posted earnings per share of $8.88 on revenue of $59.9 billion, exceeding analysts’ forecasts on both the top and bottom lines.

Alongside the earnings beat, Meta revealed ambitious capital expenditure plans for 2026, projecting spending between $115 billion and $135 billion, a sharp increase from about $72 billion in 2025. The bulk of this investment will be directed toward AI infrastructure, particularly data centers needed to train and deploy increasingly complex models.

Meta’s aggressive push mirrors a broader trend among major technology firms such as Amazon, Google and Microsoft, all of which are committing vast sums to expand their AI computing capacity. Meta has also made high-profile talent and equity moves, including a multibillion-dollar deal with Scale AI that brought its founder, Alexandr Wang, into a senior AI leadership role.

Not all parts of the business are firing on all cylinders. Meta’s Reality Labs division, which houses its metaverse and VR initiatives, generated just under $1 billion in quarterly revenue while posting operating losses of around $6 billion. The company has recently reduced headcount in this unit and said it will redirect some of the savings toward wearables, including AI-powered smart glasses.

At the same time, Meta faces execution challenges in AI. Delays to its next major Llama model and reports that it may move away from its open-weights strategy have raised questions about whether the company can maintain its early momentum, especially as rivals roll out new models at a rapid pace.

Beyond technology and spending, Meta continues to contend with regulatory scrutiny. Governments are increasingly debating limits on social media use by children, while in the U.S. the Federal Trade Commission has indicated it will continue to pursue antitrust action related to Meta’s past acquisitions.

For now, investors appear focused on Meta’s strong core advertising performance and its willingness to invest aggressively for future growth. The latest results suggest the company is prepared to absorb higher costs and short-term volatility as it bets heavily on AI to define its next phase.