TLDR

Meta reported Q4 earnings of $8.88 per share on $59.9 billion revenue, beating analyst expectations of $8.16 and $58.4 billion
Company plans to spend $115-$135 billion on AI infrastructure in 2026, up from $72.22 billion in 2025
Meta shares jumped over 10% in after-hours trading following the earnings announcement
Reality Labs division lost $6 billion in the quarter despite bringing in $955 million in revenue
Meta spent $14.3 billion to acquire 49% of Scale AI and hire its CEO Alexandr Wang as chief AI officer

Meta shares climbed more than 10% in after-hours trading Wednesday after the company crushed Wall Street’s expectations. The social media giant posted Q4 earnings of $8.88 per share on revenue of $59.9 billion.

JUST IN: $META REPORTED EARNINGS

EPS of $8.88 beating expectations of $8.19
Revenue of $59.9B beating expectations of $58.5B

Meta said it expects to spend between $115B-$135B on Capital Expenditures (CAPEX) in 2026 above expectations of $111B pic.twitter.com/qogRc7p6cT

— Evan (@StockMKTNewz) January 28, 2026

Analysts had expected earnings of $8.16 per share on revenue of $58.4 billion. The company pulled in a profit of $22.8 billion for the quarter.

Daily active users across Meta’s apps hit 3.58 billion. That’s a lot of scrolling.

Meta Platforms, Inc., META

CEO Mark Zuckerberg called it “strong business performance in 2025.” The company guided for current quarter revenue of as much as $56.5 billion.

But the real story is the money Meta is throwing at AI. Capital expenditures hit $22.14 billion in Q4 alone. Most of that went to data centers and AI infrastructure.

AI Spending Reaches New Heights

For 2026, Meta expects to spend between $115 billion and $135 billion on capital expenses. That’s nearly double the $72.22 billion spent in 2025.

The company is locked in an arms race with Amazon, Google, and Microsoft. All four tech giants are pouring billions into AI data centers.

Meta recently made a splash by spending $14.3 billion for 49% of Scale AI. The deal brought Scale AI CEO Alexandr Wang on board as Meta’s chief AI officer to run its Superintelligence Labs.

Zuckerberg has big plans. “I’m looking forward to advancing personal superintelligence for people around the world in 2026,” he said.

Reality Labs Continues Bleeding Cash

Meta’s virtual and augmented reality unit remains a money pit. Reality Labs brought in $955 million in revenue but posted losses of $6 billion.

That was slightly worse than the $5.9 billion loss analysts expected. The division has consistently posted big losses quarter after quarter.

The company recently cut jobs in its metaverse division. Some of those savings will fund wearables initiatives like AI-powered smart glasses.

Zuckerberg predicts smart glasses will become the “next major computing platform.” He believes they’ll eventually replace smartphones.

Meta has partnered with Ray-Ban maker EssilorLuxottica on its smart glasses. Most analysts think this is where Meta’s AI investments could actually pay off.

The glasses could improve advertising efficiency and create new revenue streams. But that’s still a ways off.

AI Strategy Hits Some Bumps

Meta’s AI rollout hasn’t been entirely smooth. The company has experienced long delays with its Llama 4 Behemoth model.

CNBC reports Meta is considering making its next major AI model proprietary. That would mark a shift from the open-weights strategy that let third-party developers access and improve Meta’s models.

Some see this as a sign Meta is scrambling to keep up. Google’s Gemini 3 model now leads the pack, even outpacing ChatGPT developer OpenAI.

Meta started 2025 as a strong AI leader but faces stiffer competition now. Operating costs jumped 40% year-over-year to $35.15 billion.

Legal and Regulatory Pressures Mount

A landmark trial accusing Meta of addicting young people to social media kicked off in Los Angeles. The case involves a 19-year-old woman who allegedly suffered severe mental harm from social media addiction.

Zuckerberg is scheduled to testify as a witness. Snap and TikTok parent ByteDance already settled to avoid the trial.

Meta and YouTube remain as defendants. Hundreds of similar lawsuits accuse social media firms of causing depression, eating disorders, and even suicide among young users.

The FTC announced last week it’s appealing its antitrust case loss against Meta. The case alleged Meta bought Instagram and WhatsApp to eliminate competition.

Australia enacted a social media ban for children under 16. France is considering similar action.

The post Meta Stock: Earnings Beat Sends Shares Soaring After Hours Despite Heavy AI Spending appeared first on CoinCentral.

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Filed under: News - @ January 29, 2026 9:30 am