Meta Platforms (META 2.95%) is off to a fast start this year. Shares climbed 9% in January, building off two straight years of double-digit gains and a triple-digit return in 2023. The momentum continues.
Nonetheless, investors have a lot to digest when thinking about the future of this business. Meta just reported its latest financial results, and it revealed its spending outlook for 2026. Capital expenditures (capex) are expected to total between $115 billion and $135 billion this year.
That would be up substantially from $72 billion in capex in 2025. The notable year-over-year growth is "driven by increased investment to support our Meta Superintelligence Labs efforts and core business," according to CFO Susan Li.
Here's why this huge bet makes complete sense.
Image source: Getty Images.
No need to check the price tag
It's OK if investors are feeling the jitters. After all, Meta raked in $116 billion in operating cash flow in 2025. That aligns with the lower end of the forecast capex range, showcasing just how sizable the spending will be. Based on Meta's track record of underestimating its budget, though, I suspect capex will be closer to the higher end of the range.
By now, it should be clear that Mark Zuckerberg, the company's founder and CEO, is not hesitating one bit when it comes to Meta's AI ambitions. The goal is for the business to introduce what it calls personal superintelligence, which uses AI to empower people to lead fulfilling lives.
Where will all this money go?
That 11-figure capex estimate will be directed toward expanding AI infrastructure, so things such as data centers. This will develop more computing capacity to power the entire business. This buildout aims to lessen Meta's dependence on third parties, such as Nvidia and the cloud computing companies.
NASDAQ: META
Key Data Points
If it doesn't make dollars, it doesn't make sense
Zuckerberg provided a valuable look at what he's thinking relating to the company's AI push and the potential opportunity ahead.
"Over the coming years, I think that the increased productivity from AI will make advertising a meaningfully larger share of global GDP than it is today," he said in April last year.
To be clear, this goal is contingent on Meta's ability to continue to improve ad capabilities for customers. Its AI must help businesses become more creative and more efficient in their campaigns. And it has to generate a better return on ad spending.
But if Zuckerberg is correct in his assessment, then it's no surprise at all why Meta is going all in on AI. Growing ad revenue, which totaled $196 billion in 2025 (up 22% year over year) and represented 98% of the company's sales, is the primary objective. Should Meta's phenomenal growth, particularly at this scale, keep up, then it's an early sign that the AI investments might be paying off.
