Meta Platforms has reduced annual equity awards for most employees by about 5%, the Financial Times first reported. The move follows a similar reduction last year and comes as Meta increases AI-related capital spending to $115–$135 billion in 2026. The company reported about $201 billion in 2025 revenue.
Key Highlights
- Meta cuts most employee equity awards by about 5%.
- Capital spending projected at $115–$135 billion for 2026.
- Meta posted roughly $201 billion revenue in 2025.
Meta Platforms has reduced annual equity awards for most employees by about 5% as the company increases spending on artificial intelligence infrastructure and data centers.
The move was first reported by the Financial Times, which cited people familiar with the matter. The reduction applies to a majority of staff but does not affect top-performing employees, whose stock-based compensation will remain unchanged.
Equity Compensation Adjustment
Equity awards are a key part of pay at large technology companies and are granted in company shares that vest over time. The latest reduction follows an earlier cut of about 10% in 2025, according to the Financial Times report.
The adjustment comes as Meta raises investment in AI systems, including computing power and data center capacity needed to train and operate large-scale artificial intelligence models.
Rising AI Capital Expenditure
Meta has projected capital expenditures of $115 billion to $135 billion in 2026, largely tied to AI infrastructure. The company has said it is expanding its computing footprint to support generative AI tools and advertising technologies.
The increase in AI investment aligns with broader trends across the technology sector. Major companies including Microsoft and Alphabet have also raised capital spending to build AI data centers and cloud infrastructure, according to their latest earnings disclosures.
Meta reported revenue of approximately $201 billion in 2025, up about 22% year over year. Net income exceeded $60 billion for the year, based on company filings. Stock-based compensation expenses totaled more than $20 billion in 2025.
The company has not publicly disclosed the total savings expected from the reduction in equity awards.
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