Key Highlights

  • Meta Platforms (NASDAQ:META) narrowed its 2026 capital expenditure outlook to USD 135 to USD 145 billion on Wednesday, October 21, 2026, raising the low end from USD 130 billion.
  • Third-quarter capital expenditure, including finance-lease principal, reached USD 34.91 billion against operating cash flow of USD 32.79 billion, leaving free cash flow at minus USD 2.12 billion.
  • Long-term debt rose to USD 80.92 billion at September 30, 2026 from USD 58.74 billion at the end of 2025, and the company bought back no stock in the quarter.
  • A new nonvoting Class C stock, listed from 2027, gives Meta a further funding route, with capital raising named among its uses, although no offering has been announced.

What the Third Quarter Cost

Meta Platforms (NASDAQ:META) reported on Wednesday, October 21, 2026 that third-quarter capital expenditure, including principal payments on finance leases, reached USD 34.91 billion. Operating cash flow was USD 32.79 billion, so free cash flow came to minus USD 2.12 billion. The company also took a USD 9.89 billion legal charge tied to an August 2026 agreement with 52 attorneys general, with total payments under that agreement reaching about USD 18.59 billion. The 2026 capex range was narrowed to USD 135 to USD 145 billion from USD 130 to USD 145 billion. Total 2026 expenses are now guided at USD 175 to USD 179 billion. Cash and marketable securities stood at USD 82.45 billion at September 30, 2026, while long-term debt reached USD 80.92 billion.

How the Funding Mix Is Shifting

Meta Platforms (NASDAQ:META) is moving from funding AI with surplus cash to funding it with a mix of cash, debt and, potentially, equity. Long-term debt rose by about USD 22.18 billion in nine months, calculated from the two balance-sheet dates. Share repurchases fell to zero in the quarter from USD 3.33 billion a year earlier, while dividends of USD 1.36 billion continued. The new Class C stock adds an equity channel that does not dilute voting control. Management also said investments through its superintelligence unit will take longer to pay back than core-business spending, and that Reality Labs losses should narrow to about USD 15 billion in 2027 from USD 18 to USD 19 billion in 2026. That shift frees cash for AI data centres.

Risks and What to Watch

The first risk for Meta Platforms (NASDAQ:META) is the payback period: the company itself says AI returns will arrive more slowly than returns on the core advertising business. The second is the balance sheet, since higher debt costs more with the Fed funds rate at 3.75% to 4.00% after the September hike. The third is cash outflow from the legal agreement and from youth-related trials scheduled in the US in coming months. Equity holders also face potential dilution from Class C issuance. Investors should watch the Fed decision on Wednesday, October 28, 2026, Alphabet and Microsoft capex updates on the same day, fourth-quarter results in early 2027 and the Class C charter amendment on Tuesday, January 19, 2027.

Where Things Stand

The answer is that Meta Platforms (NASDAQ:META) is now paying for AI with borrowing and paused buybacks, with nonvoting Class C stock held in reserve. Third-quarter capex exceeded operating cash flow by USD 2.12 billion, and debt is up about USD 22 billion this year. The next catalysts are the Fed decision on October 28, peer capex updates the same day and the January 19, 2027 charter amendment. Capex ranges are company forecasts, not commitments, and this is not investment advice.