...September 18, 2025 This report does not constitute a rating action. What's new: Meta Platforms Inc. reported second-quarter 2025 results well ahead of our expectations, with revenue and EBITDA growth accelerating from first-quarter 2025 pacing. The company updated its full-year 2025 guidance for total expenses of $114 billion-$118 billion and capital expenditure (capex) of $66-$72 billion. Most importantly, Meta suggested its 2026 capex could increase approximately $30 billion over 2025 levels. We previously assumed capex could reach $100 billion only by the end of this decade. Why it matters: Meta will almost double capex in 2025 and further step up investments significantly in 2026 as it pursues its goal of developing leading AI infrastructure. The company's multiyear (and multibillion-dollar) AI-driven infrastructure investment plan reflects its plan to accelerate AI model development and product experience to help uphold its competitive advantage and market position in the digital advertising...
