Meta to issue new class of shares as it tightens AI spending forecast
META•Meta raised the lower end of its 2026 capital expenditure forecast to $135 billion from $130 billion and said it will issue non-voting Class C shares in January 2027. Third-quarter revenue was $64.60 billion, and the company forecast fourth-quarter revenue of $73 billion to $76 billion.
1. Shares and spending
Meta said it will issue a new class of non-voting Class C common stock in January 2027, effectively resulting in a two-for-one split. It expects capital expenditure of $135 billion to $145 billion this year, compared with its previous forecast of $130 billion to $145 billion.
2. Revenue and cash flow
Meta reported third-quarter revenue of $64.60 billion, above estimates of $63.37 billion, and forecast fourth-quarter revenue of $73 billion to $76 billion, compared with estimates of $73.73 billion. Free cash flow was a deficit of $2.12 billion, versus positive free cash flow of $10.63 billion a year earlier. Diluted earnings per share were $3.83, or $7.40 excluding a $9.89 billion charge related to an August settlement.
3. Legal challenges
A judge in New Mexico ordered Meta to pay a $25 billion penalty after a jury found the company misled state residents about its data-sharing practices and enforcement of policies on hate speech and misinformation. In August, Meta agreed to pay as much as $18 billion over a decade and restrict teenagers' use of Facebook and Instagram to settle claims by nearly all US states.
