Meta's Q3 Capex Hits $34.91B as AI Spending Keeps Climbing
META sits 37% above its 52-week low of $520.26.
Summary
Meta spent $34.91 billion on capital expenditures in Q3, including principal payments on finance leases, a heavy number even for a company this size that lands alongside the $9.89B legal charge that halved Q3 operating margin to 20%. The spending is consistent with the guidance for up to $145B in 2026 capex and the $25B debt raise disclosed in Q2, so the AI buildout is being funded partly with borrowed money. Cash, cash equivalents and marketable securities stood at $82.45B as of Sept 30, while Q3 cash flow from operating activities was $32.79B and free cash flow was negative $2.12B. Headcount was 66,775 as of Sept 30, down 15% year-over-year, and the company announced a rise in Q3 profit; Zuckerberg said Muse is "very compute intensive" to run in the near term. The question traders will price is whether revenue growth keeps outrunning this burn; Q2 revenue rose 28% to $60.8B while operating income fell 8%. Watch the Q4 capex guide on the earnings call for any sign of a step-up beyond the $145B ceiling.
At the time of this announcement, META was trading at $715.00 on NASDAQ in the Technology sector, with a market capitalization of approximately $1.8T. The 52-week trading range was $520.26 to $779.82. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.