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# Meta Q3: Guidance Points to a Record Capex Quarter, and a New Way to Pay for It
- URL: https://www.thealphaagentic.com/meta-q3-2026-earnings-results/
- Published: 2026-10-22T05:46:28.000Z
- Updated: 2026-10-22T05:46:28.000Z
- Description: Meta's Q3 capex of $34.91 billion trailed the pace its guidance implied, but it raised the floor of its 2026 range, pushing the year's biggest bill into Q4. It also created a non-voting share class it says can help finance growth.
- Author: Eli Yang
- Tags: News, AI, Datacenters, Chips & Semis, Power & Energy, Deals & Earnings

Meta Platforms (NASDAQ: META) has set up its biggest capex quarter yet. In third-quarter results released after the close on Oct. 21, it spent less than the pace its guidance implied, but it raised the floor of its 2026 capex range. That pushes the year's largest bill into the fourth quarter. Meta also created a non-voting share class it says can help finance its growth. For chip, networking and power suppliers, the 2026 order book looks firmer. Who pays for the build is now a bigger part of the story.

Meta's [third-quarter release](https://www.sec.gov/Archives/edgar/data/1326801/000162828026066700/meta-09302026xexhibit991.htm?ref=thealphaagentic.com) put capital expenditures, including principal payments on finance leases, at $34.91 billion, a quarterly high. That is up from $31.08 billion in the second quarter and $19.37 billion a year earlier. Meta now expects 2026 capex of $135 billion to $145 billion, narrowed from $130 billion to $145 billion. It spent $85.82 billion through September, according to its [earnings slides](https://s21.q4cdn.com/399680738/files/content%5Ffiles/Earnings-Presentation-Q3-2026.pdf?ref=thealphaagentic.com). By our arithmetic, that leaves $49 billion to $59 billion for the fourth quarter, or 41% to 70% more than the third. Those are our calculations, not Meta's guidance.

![Meta quarterly capex vs. depreciation, Q3 2024 to Q3 2026, with implied Q4 2026 range](https://storage.ghost.io/c/b0/f1/b0f115e2-04db-4451-bca9-8288bfdeb3a5/content/images/2026/10/meta-q3-2026-results-capex.png)

Capex hit $34.91 billion in Q3 2026; Meta's new range implies $49 billion to $59 billion in Q4\. Source: Meta Platforms earnings releases and Q3 2026 slides; Q4 range is an Alpha Agentic calculation. Chart: Alpha Agentic.

## The checklist, against the results

Our [preview of Meta's quarter](https://www.thealphaagentic.com/meta-q3-2026-earnings-preview/) set out five things to watch. Here is how each turned out. Meta had not posted call commentary as of this writing, so this analysis relies on the release, the slides and the [8-K filing](https://www.sec.gov/Archives/edgar/data/1326801/000162828026066700/meta-20261019.htm?ref=thealphaagentic.com).

| META, $ millions                    | Q3 2026 | Q2 2026 | Q3 2025 | Change vs. Q3 2025 |
| ----------------------------------- | ------- | ------- | ------- | ------------------ |
| Revenue                             | 64,601  | 60,801  | 51,242  | +26%               |
| Capex incl. finance-lease principal | 34,906  | 31,078  | 19,374  | +80%               |
| Depreciation and amortization       | 7,154   | 6,356   | 4,963   | +44%               |
| Operating cash flow                 | 32,786  | 31,862  | 29,999  | +9%                |
| Free cash flow                      | (2,120) | 784     | 10,625  | n/m                |

**Capex:** It came in below the roughly $40 billion quarterly pace we calculated from guidance. Because the low end of the range went up, the shortfall shifts spending into the fourth quarter, not out of the year.

**2027:** There is no capex number. In its [CFO outlook](https://investor.atmeta.com/investor-news/press-release-details/2026/Meta-Reports-Third-Quarter-2026-Results/default.aspx?ref=thealphaagentic.com), Meta said it is "still developing our budget and capacity plans for next year, but we expect to continue investing aggressively to support both our core business and emerging AI initiatives." It expects Reality Labs losses to narrow to around $15 billion next year as it shifts investment toward other priorities, "primarily AI."

**Expense range:** Meta raised its 2026 range to $175 billion to $179 billion, from $165 billion to $169 billion, to incorporate a $9.89 billion charge tied to its August agreement with state attorneys general. Operating margin fell to 20% from 40% a year earlier. Excluding the charge, operating income would have been $22.88 billion, about 35% of revenue by our math.

**D&A and free cash flow:** Depreciation and amortization rose 44% to $7.15 billion, and capex ran nearly five times that. Operating cash flow rose to $32.79 billion, yet free cash flow was negative $2.12 billion, compared with $10.63 billion a year earlier.

**Debt and commitments:** Long-term debt was $80.92 billion on Sept. 30, down from $83.66 billion on June 30\. The release does not explain the decline. The commitments total comes with the 10-Q, which had not been filed as of this writing. The release does not mention El Paso. It shows a $1.04 billion "data center venture distribution" without naming the venture. Operating lease right-of-use assets rose to $26.58 billion from $20.40 billion at the end of 2025.

## A new way to pay

Meta's board approved a new class of publicly listed, non-voting Class C common stock, effective Jan. 19, 2027\. It will be issued as a one-time dividend of one Class C share for each Class A and Class B share, with record and payment dates still to be set. After payment, Meta expects the Class A share price to reflect "the effect of a two-for-one stock split."

Capital raising heads the release's list of reasons. A special committee of independent directors said the new class "will provide Meta the ability to finance its growth," citing the scale of investment needed to "expand infrastructure" during the AI transformation. Under a Founder Alignment Agreement described in the 8-K, Mark Zuckerberg generally cannot sell most of the Class C shares he receives without a corresponding reduction in his voting power.

Meta has not announced a share sale. But its funding mix has shifted. It bought back no Class A stock in the first nine months of 2026, compared with $26.25 billion a year earlier, and took in $24.91 billion of net proceeds from long-term debt. It still paid $1.36 billion in dividends in the third quarter. Cash and marketable securities were $82.45 billion on Sept. 30.

## What it means for suppliers

The ad business still supplies the operating cash. Revenue rose 26% to $64.60 billion, above the top of Meta's own $61 billion to $64 billion guidance, and Meta guided fourth-quarter revenue to $73 billion to $76 billion.

**Chips and networking:** Meta's earnings materials do not name suppliers. For context, Nvidia (NASDAQ: NVDA) [said in February](https://nvidianews.nvidia.com/news/meta-builds-ai-infrastructure-with-nvidia?ref=thealphaagentic.com) that Meta will deploy "millions" of Blackwell and Rubin GPUs and adopt Spectrum-X Ethernet switches. AMD (NASDAQ: AMD) [said](https://ir.amd.com/news-events/press-releases/detail/1279/amd-and-meta-announce-expanded-strategic-partnership-to-deploy-6-gigawatts-of-amd-gpus?ref=thealphaagentic.com) shipments for the first gigawatt of a deal of up to 6 gigawatts would begin in the second half of 2026\. Broadcom (NASDAQ: AVGO) [supports Meta's MTIA chips](https://investors.broadcom.com/news-releases/news-release-details/broadcom-announces-extended-partnership-meta-deploy-technology?ref=thealphaagentic.com) under a partnership extending through 2029.

**Power and real estate:** Meta has [nuclear agreements](https://www.reuters.com/business/energy/meta-strikes-nuclear-power-agreements-with-three-companies-2026-01-09/?ref=thealphaagentic.com) with Vistra (NYSE: VST), Oklo (NYSE: OKLO) and privately held TerraPower for up to 6.6 gigawatts, plus a [20-year deal](https://www.utilitydive.com/news/meta-nuclear-deal-oklo-vistra-terrapower-ai-data-centers/809215/?ref=thealphaagentic.com) with Constellation Energy (NASDAQ: CEG) to supply its Illinois data centers. For data center landlords such as Digital Realty (NYSE: DLR) and Equinix (NASDAQ: EQIX), which Meta does not name, the lease lines are the signal to track.

## The Alpha Take

If Meta lands anywhere in its new range, the fourth quarter will be its largest capex quarter yet, at $49 billion to $59 billion by our math. That keeps 2026 demand for GPUs, custom chips, networking and power on track. The 2027 language is directional only: "continue investing aggressively."

The bigger change may be funding. With free cash flow negative, no buybacks so far this year and a new share class tied to financing growth, supplier demand could rest more on capital markets than on Meta's operating cash alone. This is analysis, not investment advice.

## What to Watch

- **The 10-Q:** Non-cancelable commitments (second quarter: $349.31 billion), exposure to the Hyperion venture in Louisiana (second quarter: $46.03 billion) and whether El Paso closed.
- **Call commentary:** Any 2027 capex detail beyond the release, once Meta posts the transcript.
- **Fourth-quarter capex:** Whether spending reaches the implied $49 billion to $59 billion.
- **Class C:** Record and payment dates, and whether Meta uses the new class to raise capital.
- **Peers:** Microsoft (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOGL) report on Oct. 28, and Amazon (NASDAQ: AMZN) on Oct. 29\. Our [Hyperscaler Capex Tracker](https://www.thealphaagentic.com/hyperscaler-capex-tracker/) will be updated after each report.