Meta Earnings Are Coming. Capital Spending Is the Focus.

Meta Platforms is set to report Q1 earnings with investors focused on ad revenue growth versus heavy AI-driven capital spending. Wall Street sees Q1 sales up about 31% to $55.6 billion and EPS of ~$6.67 (vs. $6.43 a year ago), while management projects 2026 capex of up to $135 billion—raising investor scrutiny around execution and returns on big AI investments. Recent signs of stronger monetization (18% more ads shown year-over-year and 6% higher average ad prices) suggest AI-driven targeting may be improving, but elevated depreciation and R&D costs could pressure margins. The capex outlook has previously driven volatile stock reactions, underscoring how guidance on AI spending will likely dominate market moves when Meta reports.