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Meta’s Q4 Beat Triggers Target Hikes as 2026 AI Capex Jumps to $115–$135 Billion

Analyst upgrades reflect confidence in Meta's AI-driven growth.

Overview

  • Meta reported fourth-quarter revenue of $59.89 billion and EPS of $8.88, topping estimates, and guided first-quarter sales to $53.5 billion–$56.5 billion.
  • Management set 2026 capital expenditures at $115 billion–$135 billion, nearly doubling 2025’s $72 billion to scale AI infrastructure, cloud computing and related staffing.
  • User and ad momentum continued with daily active users up 7% to 3.58 billion, ad impressions up 18%, and average price per ad up about 6%.
  • Evercore ISI raised its price target to $900 with an Outperform, Cantor Fitzgerald moved to $860 with Overweight, and Barclays lifted its objective to $800 with Overweight.
  • Shares jumped roughly 10% after the results as investors weighed near-term margin and free-cash-flow pressure against expectations for AI-driven revenue and operating income gains.