Meta shares soar on Q1 sales outlook despite AI capex ramp-up
Make us a preferred source
Make us a preferred source on Google
The news: Meta shares surged in extended trading after the social media giant guided for higher-than-expected sales in the first quarter of 2026.
The numbers: Meta shares were up more than 10% after reporting at the close. The Facebook and Instagram owner said it expects first-quarter sales to be between USD53.5 billion ($76 billion) and USD56.5 billion, beating consensus estimates of USD51.3 billion, according to Bloomberg data.
Full-year capital expenditure is expected to be between USD115 billion and USD135 billion, up from USD72.22 billion a year earlier, and higher than average forecasts of USD110.6 billion.
The company expects total expenses in 2026 to be in the range of USD162 billion and USD169 billion, up from USD117.69 billion a year ago.
The context: Meta said its planned capex growth is driven by increased investment in its AI division Meta Superintelligence Lab. Despite the outlay, the company said it expects to deliver higher operating income in 2026 compared to 2025.
Meta also said it is continuing to monitor "legal and regulatory headwinds" in the EU and US that could "significantly impact" its business and financial results.
The company continues to see "scrutiny on youth-related issues" and said it has a number of related trials scheduled in the US this year which may result in a "material loss".
