Meta to report Q4 earnings amid AI spending concerns

Meta (META) is acceptable to study its fiscal 4th fourth net aft the doorbell connected Wednesday, and Wall Street volition beryllium paying adjacent attraction to the company’s continued spending connected AI information centers.

Meta’s banal terms is down much than 12% since it reported its 3rd 4th net successful October, with investors raising concerns astir the societal media giant’s monolithic superior outlay.

Not lone did Meta summation its projected superior expenditures for 2025 from betwixt $66 cardinal and $72 cardinal to betwixt $70 cardinal and $72 billion, it besides says it expects 2026 superior expenditure maturation to beryllium “notably larger.”

In Q4, the institution is expected to walk $21.9 billion, up from $14.4 cardinal successful the aforesaid 4th past year. Meta is expected to study net per stock (EPS) of $8.16 connected gross of $58.4 billion, according to Bloomberg expert statement estimates. That would beryllium an betterment connected the $8.02 per stock and $48.4 cardinal the institution saw successful Q4 2024.

Read more: Live sum of firm earnings

Meta’s Reality Labs part is expected to bring successful $959 cardinal successful the quarter, but it's expected to study an operating nonaccomplishment of $5.9 billion.

Meta isn’t unsocial successful pouring billions into AI information centers. Advertising and AI rivals Amazon (AMZN), Google (GOOG, GOOGL), and Microsoft (MSFT) are besides dumping tremendous sums into their ain information centers.

Meta has besides spent lavishly connected splash AI hires, including by spending $14.3 cardinal to acquisition 49% of Scale AI and prosecute its CEO Alexandr Wang to service arsenic Meta’s main AI serviceman and tally its Superintelligence Labs.

But Meta has besides tally into immoderate occupation with its newest AI models, including agelong delays to its Llama 4 Behemoth.

According to CNBC, the institution is besides considering making its adjacent large AI exemplary proprietary, moving distant from the open-weights strategy that allows third-party developers to entree Meta’s models, improving them implicit time.

The institution besides precocious chopped jobs successful its metaverse division, with plans to usage immoderate of the savings connected its wearables initiatives including its AI astute glasses.

The assorted maneuvers person created a consciousness that Meta is scrambling to support up successful the AI race, contempt starting 2025 arsenic a beardown person successful the space. Google, with its Gemini 3 model, is present successful the rod position, outpacing adjacent ChatGPT developer OpenAI.

That’s helped goose Google’s stock price, which is up 66% implicit the past 12 months. Meta’s banal is up conscionable 4%, portion Amazon is up a specified 1.8%.

Meta is besides contending with expanding calls for societal media bans for children nether 16. Australia has already enacted its ain ban, and France is considering akin action.