Meta expects capital expenditure of $135 billion to $145 billion in 2026. It plans to keep investing in AI infrastructure and in new products. The company shared the outlook with its third-quarter results on 21 October.
Meta said its AI investments are already bringing in extra advertising revenue. It credits stronger engagement, better recommendations and more efficient monetisation. It expects these investments and new product launches to support revenue growth through 2027, even as heavy infrastructure spending continues.
Strong Third-Quarter Revenue
Revenue for the quarter ended 30 September 2026 was $64.60 billion, up 26% year on year. Advertising revenue rose to $63.06 billion from $50.08 billion a year earlier. Ad impressions across its family of apps grew 10%. The average price per ad rose 14%.
Where the Capacity Will Go
Meta said its existing infrastructure and planned additions will let it split resources across model training, core business growth and new products. It also pointed to the launch of Muse and Muse Wonder, which it describes as its first frontier model.
Expenses and the Legal Charge
Meta expects total expenses for 2026 of $175 billion to $179 billion. The outlook includes a $9.9 billion charge for legal proceedings, booked in the third quarter.
Total costs and expenses in the quarter reached $51.61 billion, up 68% year on year. The rise included a $9.89 billion charge from an August agreement with 52 US state attorneys general. It settles litigation over teen mental health and social media.
Without that charge, third-quarter operating income would have been $22.88 billion. The reported figure was $12.99 billion. The reported operating margin was 20%, down from 40% a year earlier.
Reality Labs Losses
Meta expects Reality Labs losses of $18 billion to $19 billion in 2026. It expects them to narrow to about $15 billion in 2027. It plans to move that investment towards other priorities, mainly AI.
