Overview
- Meta forecasts Q1 2026 revenue growth of 26% to 34%, signaling acceleration from late 2025.
- Management plans to nearly double 2026 capital spending to $115 billion to $135 billion to scale AI infrastructure.
- AI-driven ad tools, including the generative ads recommendation model (GEM) and sequence learning, are boosting targeting, impressions, and pricing.
- Meta is expanding monetization beyond its core apps with a gradual rollout of ads on WhatsApp and Threads and reports paid messaging on WhatsApp at a run rate above $2 billion.
- The company is steering metaverse efforts toward AI-integrated hardware such as smart glasses, even as Reality Labs continues to post sizable losses.