Meta Flags Bigger 2026 AI Buildout as ‘Superintelligence' Drive Accelerates

Core Insights - Meta is preparing for increased infrastructure spending in 2026 to support the development of "personal superintelligence" as stated by CEO Mark Zuckerberg [1][4] - CFO Susan Lee indicated that capital expenditures will grow significantly faster in 2026 compared to 2025, with total expenses also expected to rise at a faster rate next year [2][3] Financial Performance - Meta reported Q3 revenue of $51.24 billion, reflecting a 26% year-over-year increase, with ad impressions up 14% and average ad prices up 10% [7] - Family daily active users reached 3.54 billion, an 8% increase [7] - A one-time tax charge raised the effective tax rate to 87%, reducing GAAP net income to $2.71 billion, with an EPS of $1.05; excluding the charge, EPS would have been $7.25 [7] AI and Engagement Metrics - Over 1 billion people use Meta AI monthly, with usage increasing as models improve; automated ad tools are generating an annualized revenue of $60 billion [6] - Instagram has surpassed 3 billion monthly active users, and Threads has over 150 million daily active users, with engagement metrics improving due to AI enhancements [8][9] Strategic Initiatives - Meta is consolidating various specialized ad models into larger architectures to improve conversion rates and ad quality [6] - The company is aggressively investing in compute resources to prepare for potential breakthroughs in AI, which will enhance recommendations and advertising [5][10] - New AI products, such as Vibes, have significantly increased media creation and engagement on the platform, with over 20 billion images generated [9]