Meta raises 2026 capital expenditure guidance to $125 billion–$145 billion, citing higher component pricing and data center costs

Meta Platforms increased its estimated 2026 capital expenditures range from $115 billion–$135 billion to $125 billion–$145 billion, a 7% increase at the high end. The company attributed the higher spending to 'higher component pricing' and 'additional data center costs to support future year capacity.'

Meta stock dropped 8.6% on Thursday following the Wednesday earnings announcement. Investors have expressed doubt about whether the company's AI investments will generate returns, drawing parallels to Meta's prior $80 billion Metaverse spending, which did not lead to material gains.

CEO Mark Zuckerberg stated on the earnings call that the company does not have 'a very precise plan for exactly how each product is going to scale month over month.' Meta's AI product plans remain unclear, in contrast to competitors like Alphabet and Amazon that are already generating revenue from AI services.