According to Fortune, tech CFOs are facing the monumental task of justifying unprecedented capital expenditures to investors. Meta CFO Susan Li announced the company expects 2026 capital expenditures, including finance leases, to hit $115-$135 billion, a massive jump from $72 billion in 2025. Despite this “meaningful step-up,” she projects 2026 operating income in absolute dollars will still exceed 2025 levels, linking the spend to Meta’s superintelligence roadmap and core ad business needs. Meanwhile, Microsoft CFO Amy Hood reported Q2 FY26 capex of $37.5 billion, up from $34.9 billion the prior quarter, focused on AI data centers and short-lived assets like GPUs. Both companies posted strong quarterly results to back their strategy, with Meta generating $59.89 billion in Q4 revenue and Microsoft Cloud surpassing $50 billion in quarterly revenue.
The Discipline Behind The Dollars
Here’s the thing: these aren’t blank checks. The narrative from both finance chiefs is intensely focused on tying every dollar to a visible, monetizable outcome. Meta’s Susan Li was explicit—this spend is an extension of their core business. It’s about improving ad targeting and advertiser performance, then scaling the infrastructure behind what’s already working. They’re not betting the farm on some speculative, standalone AI service; they’re turbocharging the $200-billion-a-year ad engine that prints money. The promise that operating income will still grow in absolute terms is the key concession to “discipline.” It’s basically saying, “Yes, we’re spending like crazy, but the profit machine is so powerful it’ll outrun the costs.”
Microsoft’s Amy Hood took a similar, though slightly different, tack. She framed it around meeting sustained demand and optimizing over the useful life of assets, telling investors to look past “quarter-to-quarter margin optics.” That’s a smart way to handle the margin compression from buying piles of expensive, short-lived GPUs. Her trump card? Azure growth at 39% year-over-year and a cloud business exceeding $50 billion a quarter. When demand is that concrete, it’s easier to sell the spend. But even then, Fortune notes investors were “picky” about Azure’s growth rate decelerating slightly. That’s the tightrope these CFOs walk. No number is ever big enough to satisfy the growth hunger, but every dollar spent is scrutinized.
CFO Musical Chairs & IPO Optimism
While the tech titans wrestle with hundred-billion-dollar budgets, there’s a whole other world of CFO movement happening. It’s like a game of musical chairs for finance executives. The Trade Desk appointed Tahnil Davis as interim CFO, On Holding named Frank Sluis, and Americold Realty Trust brought on Christopher Papa. We also saw appointments at CB Financial Services, OnePay, NetSol Technologies, and Altanine. It’s a busy time for finance leadership, signaling companies are gearing up for strategic shifts or stability.
Adding to the confidence, a new EY report suggests 2025’s IPO momentum, especially in the second half, has fueled significant optimism for 2026. The focus is expected to remain on AI and defense tech, with biotech potentially making a comeback. But EY throws in the necessary caution: be ready, because external shocks can close transaction windows fast. It’s a reminder that for every company planning a massive capex binge or a public debut, the market’s mood can turn on a dime. The CFO’s job is to make the story of spending or going public so compelling that investors look past the scary headline numbers. Meta and Microsoft are writing the playbook on that right now.
