Earnings
Meta beat revenue estimates, then sank almost 7% as free cash flow turned negative
By the newsroom · · 1 min read · ▶ 0:58
The essentials
What happened
Meta shares slumped nearly 7% on Thursday as the company showed negative free cash flow in its third-quarter earnings and raised the floor of its full-year capital expenditures.[1] Revenue jumped 26% from a year ago, coming in at $64.60 billion versus the $63.37 billion analysts expected.[1] Free cash flow came in at a negative $2.12 billion during the quarter.[1] Capital spending reached $34.9 billion in the third quarter, according to FX Leaders, which reports it was the company's first negative free cash flow reading since 2012.[2] Meta said it expects full-year capex of $135 billion to $145 billion, raising the bottom of the range from a previous $130 billion.[1]
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What the video doesn't say
Earnings per share were reported at $3.83, though it wasn't clear if that figure was directly comparable with the $5.75 per share Wall Street was looking for.[1] FX Leaders reports that the stock closed at $648.85.[2] Business Today notes that negative free cash flow does not necessarily signal financial distress for a company investing heavily for future growth.[3] Meta said the new nonvoting Class C common stock is meant to maintain its "founder-led structure" and "provide Meta the ability to finance its growth."[1] According to the SEC filing cited by CNBC, Mark Zuckerberg was convinced to stay in California with the company's new stock plan.[1] This article is for educational purposes only and is not financial advice.[1][3]
Sources
- 1Meta stock sinks nearly 7% as AI spend pushes free cash flow negativeCNBC · October 22, 2026
- 2META Stock Falls 7% to $648.85 as AI Spending Pushes Free Cash Flow NegativeFX Leaders · October 23, 2026
- 3Meta shares slide 7% as AI spending push drives capex higher, free cash flow turns negative - BusinessTodayBusiness Today · October 22, 2026
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