Meta Raises 2026 Capital Expenditure Forecast to $125-145 Billion on Higher Costs

Meta has raised its 2026 capital expenditure forecast to between $125 billion and $145 billion, citing higher component costs as the primary driver. The increase stems largely from elevated expenses for key technology components, particularly in memory pricing, according to company announcements.

Meta stated that this adjustment reflects ongoing challenges in the supply chain for essential hardware.

Mark Zuckerberg, Meta's CEO, explained that most of the capex increase is due to higher component costs, particularly memory pricing. ' In addition, Meta is streamlining teams to ensure they remain appropriately sized. This effort comes as people increasingly use AI for building tasks, reshaping resource allocation within the company.

Zuckerberg noted that Meta aims to optimize team structures amid growing AI adoption. He described the changes as part of broader operational adjustments to maintain efficiency. The forecast adjustment aligns with industry trends where AI-driven demands are pushing up costs for hardware and operations.

Meta provided no specific timeline for implementing the team streamlining efforts. The capex hike underscores Meta's commitment to infrastructure development despite cost pressures. Zuckerberg's comments highlight how elevated memory pricing contributes to the overall increase.