...November 17, 2025 This report does not constitute a rating action. What's new: Meta Platforms Inc. reported solid third-quarter 2025 results, with revenue growth of 26%, the fastest rate since the first quarter of 2024. However, operating income growth slowed as total expenses grew 32%. The company updated its 2025 guidance for total expenses of $116 billion-$118 billion and capital expenditure (capex) of $70 billion-$72 billion. Meta also expects 2026 total expenses to grow at a significantly faster rate than in 2025, and for 2026 capex to be notably larger than 2025. Why it matters: Meta's multi-year (and multi-billion-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 market. Capex (including finance leases) as a percentage of revenue was 34% for the last 12 months, and we expect it will rise to 50% in the next few years. We...
