Meta Expects Up To $145 Billion In Capex As AI Investments Expand

Meta expects capital expenditure of $135-145 billion in 2026 as it continues investing in AI infrastructure and developing new products, according to its third-quarter financial results released on October 21. 

The company says its AI investments are already generating additional advertising revenue through stronger engagement, improved recommendations, and more efficient monetisation. Meta expects these investments and new product launches to support revenue growth throughout 2027, even as it continues to invest heavily in infrastructure.

“Our AI investments are already delivering substantial incremental advertising revenue through stronger engagement, better recommendations, and more efficient monetization,” the company said in its financial outlook commentary.

Meta reported revenue of $64.60 billion for the third quarter ended September 30, 2026, up 26% year-on-year. Advertising revenue rose to $63.06 billion from $50.08 billion in the same quarter last year. Ad impressions across its family of apps increased 10%, while the average price per ad rose 14%.

The company said its existing infrastructure capacity and planned additions would let it allocate resources across model training, core business growth, and developing and supporting new products. It also highlighted the launch of Muse and Muse Wonder, describing them as its first frontier model.

Meta expects total expenses for 2026 to range from $175 billion to $179 billion. The revised outlook incorporates a $9.9 billion charge related to legal proceedings recognised in the third quarter.

Total costs and expenses reached $51.61 billion in the quarter, up 68% year-on-year. The increase included a $9.89 billion charge related to an August agreement with 52 US state attorneys general to resolve litigation concerning teen mental health and social media.

Excluding this charge, Meta's third-quarter operating income would have been $22.88 billion, compared with the reported $12.99 billion. The company's reported operating margin was 20%, down from 40% a year earlier.

Meta says Reality Labs losses will range between $18 billion and $19 billion in 2026. Looking ahead, it anticipates losses to narrow to around $15 billion in 2027 as it redirects investment towards other priorities, primarily AI.