Meta Q1 earnings to shine spotlight on spending, with capex nearly doubling from last year

Meta Platforms (META) is acceptable to study archetypal 4th net aft the marketplace adjacent connected Wednesday, with capitalist absorption apt to halfway connected the company’s monolithic AI investments and caller unit cuts aimed astatine reshaping the enactment for the AI age.

The institution is expected to study adjusted net per stock (EPS) of $8.15 connected gross of $55.5 billion, according to Bloomberg estimates. In January, the institution guided to archetypal 4th gross of $53.5 billion-$56.5 billion.

Meta banal is up astir 2% this year, against a 6% summation for the Nasdaq Composite (^IXIC).

In the archetypal 4th past year, Meta reported EPS of $6.43 connected gross of $42.3 billion. In that report, the institution said it expected full expenses successful 2025 to scope $113 cardinal to $118 billion, with superior expenditures forecast astatine $64 cardinal to $72 billion.

By the extremity of the year, Meta’s realized expenses deed $117.7 billion, and its superior expenditures tallied $72.2 billion. In January, the institution said it expected 2026 expenses to travel successful betwixt $162 billiont to $169 cardinal and its superior expenditures to scope $115 cardinal to $135 billion.

The grade to which the institution updates these numbers volition beryllium the cardinal for investors connected Wednesday. Combined with peers Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOG, GOOGL), the alleged large 4 hyperscalers starring the AI concern rhythm pledged successful January to walk upwards of $650 cardinal successful 2026.

Last week, Meta announced plans to chopped 8,000 workers — oregon 10% of its workforce — and instrumentality down 6,000 unfastened roles. In a memo announcing these cuts, Meta cited a continued ratio propulsion and a request to “offset the different investments we’re making.”

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