Meta on Wednesday, October 21, said it now expects 2026 capital expenditures of $135 billion to $145 billion, raising the low end of its prior $130 billion to $145 billion range, and announced a new class of publicly listed, non-voting Class C common stock, according to its third-quarter results.
Revenue rose 26% from a year earlier to $64.60 billion, ahead of the $63.37 billion analysts expected, according to LSEG data cited by Reuters. Meta guided fourth-quarter revenue to $73 billion to $76 billion. Net income was $9.86 billion, or $3.83 a share, after a $9.89 billion charge tied to its August agreement with 52 state attorneys general over teen mental health claims. Excluding that charge, Meta said, diluted EPS would have been $7.40.
The spending shows up in cash. Third-quarter capital expenditures, including principal payments on finance leases, were $34.91 billion, against $32.79 billion of operating cash flow, leaving free cash flow at negative $2.12 billion, compared with positive $10.63 billion a year earlier. Meta said it expects to keep “investing aggressively” next year to support its core business and AI efforts.
The Class C shares take effect in January 2027. Each Class A and Class B shareholder will receive one Class C share per share held, which Meta said amounts in market terms to a two-for-one split that does not change anyone’s voting power. Meta said the new class gives it room to raise capital, pay employees and fund acquisitions, and that it will continue “the founder-led model.” Mark Zuckerberg also signed a Founder Alignment Agreement covering his sales of the new shares, and committed to stay in California for eight years, CNBC reported, citing a Meta filing.
On the call, Zuckerberg said more than 10 million people in the US and Canada have set up Muse personal agents over the past month and a half, with about 25% using it on a given day and shopping the biggest use case, according to CNBC. Separately on Wednesday, a New Mexico judge imposed a $25 billion penalty on Meta in a data privacy case tied to Cambridge Analytica, Reuters and CNBC reported. Meta has also brought Muse to the Mac.
Sources
- Meta: Meta Reports Third Quarter 2026 Results (October 21, 2026)
- Reuters via Investing.com: Meta to issue new class of shares as it tightens AI spending forecast (October 21, 2026)
- CNBC (Jonathan Vanian): Meta reports third-quarter revenue beat and issues strong guidance (live updates, October 21, 2026)