Meta Earnings: Record Quarter, Big AI Spending
Meta earnings showed a record quarter and raised 2026 capex to $115-135 billion, refocusing traders on cash-flow and expense positioning.
KEY TAKEAWAYS
- Raised 2026 capex to $115-135 billion to scale AI infrastructure and Superintelligence Labs.
- Reported Q4 revenue $59.9 billion and EPS $8.88, beating consensus.
- Reality Labs had $955 million revenue and a $6.0 billion operating loss, shifting focus to glasses and wearables.
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Meta Platforms Inc. reported on Jan. 28, 2026, a record quarter marked by a sharp increase in capital spending to expand its artificial intelligence (AI) infrastructure, even as its Reality Labs unit continued to post significant losses.
Record Quarter Results
Meta said in a press release that fourth-quarter revenue reached $59.9 billion, up 24.0% year over year, with diluted earnings per share of $8.88, exceeding consensus estimates. Full-year revenue totaled $201 billion, a 22.0% increase from 2024. This strong top-line and profit performance set the stage for management to announce a substantial rise in investment for the coming year.
AI Spending and Guidance
The company raised its 2026 capital-expenditure guidance to $115 billion to $135 billion, citing funding for AI infrastructure, data centers, custom silicon, and Meta Superintelligence Labs. It projected total expenses of $162 billion to $169 billion and expects operating income to surpass 2025 levels despite the accelerated AI spending. This guidance signals a significant near-term increase in outlays as Meta prioritizes building model and hardware capacity to support its long-term product and research goals.
Reality Labs Losses
Reality Labs reported $955 million in fourth-quarter revenue and an operating loss of $6.0 billion, continuing a pattern of heavy development losses tied to the metaverse effort. Meta said it is shifting Reality Labs’ focus toward glasses and wearables and expects losses to peak this year before gradually declining. The unit’s losses highlight the cost of Meta’s long-term product bets, even as the broader business delivered record sales and financial flexibility to advance its AI agenda.
