Meta Lifts 2026 AI Capex Floor to $130 Billion as Q2 Operating Income Falls 8%
Updated
Updated · Yahoo Finance · Aug 2
Meta Lifts 2026 AI Capex Floor to $130 Billion as Q2 Operating Income Falls 8%
3 articles · Updated · Yahoo Finance · Aug 2
Summary
Meta raised the low end of its 2026 capital-expenditure outlook to $130 billion from $125 billion, keeping the top end at $145 billion as it doubles down on AI infrastructure.
Q2 operating income fell 8% to $18.8 billion after costs and expenses jumped 55%, led by a 68% surge in research and development spending.
Free cash flow dropped to $784 million from $8.5 billion a year earlier, while long-term debt climbed to $83.7 billion and cash holdings shrank 57%.
Mark Zuckerberg said Meta is getting multiple offers to sell excess compute capacity at a meaningful premium, giving it a near-term way to monetize constrained AI supply.
The heavier spending comes as Meta also pitches AI as a boost to app engagement, ad performance and product development speed, even with analysts expecting negative free cash flow in 2026 and 2027.