Meta Stock Surges After Q4 2025 Earnings Beat and Strong Q1 2026 Revenue Outlook Despite Higher Capex

Meta Platforms Inc (NASDAQ: META) shares jumped sharply in after-hours trading after the company delivered better-than-expected Q4 2025 earnings and issued a strong revenue forecast for the first quarter of 2026, easing investor concerns around its rising capital expenditures. Class A shares of the Facebook parent climbed about 10.7% as markets focused on upbeat near-term revenue guidance rather than longer-term spending plans.

For Q1 2026, Meta projected revenue in the range of $53.5 billion to $56.5 billion, well above Wall Street’s consensus estimate of $51.27 billion. Analysts noted that the revenue guidance beat, combined with a solid earnings performance, helped offset worries about the company’s increasing investments. Steve Sosnick, chief strategist at Interactive Brokers, said the earnings and guidance were the main drivers pushing the stock higher, highlighting Meta’s ability to command higher advertising prices.

Looking ahead, Meta forecast full-year 2026 capital expenditures between $115 billion and $135 billion, exceeding market expectations of around $110 billion. Total expenses are expected to reach $162 billion to $169 billion, also above the Street’s estimate of $150 billion. While these figures raised eyebrows, Jefferies analyst Brent Thill had previously suggested that elevated initial guidance would not come as a surprise, noting that management often guides conservatively before actual results land lower. Thill continues to rank Meta as his top stock pick.

The company’s heavy spending is largely tied to expanding its artificial intelligence infrastructure, including major investments in data centers. Meta recently announced a $6 billion deal with Corning Incorporated to supply fiber optic cables for its growing data center footprint. Management said the higher capex reflects increased investment in Superintelligence Labs and ongoing support for its core business, with most expense growth driven by infrastructure and third-party cloud costs.

In Q4 2025, Meta posted earnings of $8.88 per share on revenue of $59.89 billion, beating expectations of $8.19 per share on $58.35 billion in revenue. Net income surged quarter over quarter, largely due to a one-time tax-related impact in the prior quarter. CEO Mark Zuckerberg said the company delivered strong performance in 2025 and is focused on advancing personal superintelligence globally in 2026.