Meta Revenue Surges 33% as AI Capital Expenditure Forecasts Climb

Meta reported Q1 2026 revenue of $56.31 billion, with earnings per share (EPS) beating analyst estimates by 7.2%. Despite the strong financial performance, META shares fell 6% in post-market trading as investors reacted to concerns over surging spending and regulatory risks. The company significantly raised its capital expenditure (CapEx) outlook to a range of $125 billion to $145 billion to support its AI ambitions. This guidance update follows the disclosure of $107 billion in contractual commitments through 2027, signaling an aggressive long-term infrastructure play. Market participants are now weighing the impact of these massive outlays on future profitability and cash flow sustainability. The focus remains on whether Meta can effectively monetize its AI investments to justify the escalating cost base.