Meta beats earnings as 2026 AI capex tops out at $135 billion

Core Insights - Meta reported a significant quarter with approximately $59.9 billion in revenue and $8.88 in EPS, planning to invest $115 billion to $135 billion in capex for 2026, alongside expenses projected to reach $169 billion, indicating a strong focus on future growth and AI development [1][2] Financial Performance - The company's shares surged about 10% in after-hours trading following the announcement of better-than-expected results and a positive revenue outlook, despite a substantial spending plan [2] - Meta's Q1 revenue outlook for 2026 is estimated between $53.5 billion and $56.5 billion, exceeding many analysts' expectations [3] Business Strategy - Mark Zuckerberg emphasized a vision for advancing "personal superintelligence" while acknowledging the importance of Meta's core advertising business, which continues to thrive with an 18% year-over-year increase in ad impressions and a 6% rise in average ad prices [4] - The company reported an average of 3.58 billion daily active users across its platforms in December, supporting its narrative of significant investment potential [4] Capital Expenditure Plans - Meta's capex plan for 2026 is nearly double the $72.2 billion reported for 2025, with total expenses projected to rise from $117.7 billion in 2025, highlighting the company's commitment to substantial investment in AI and infrastructure [5]