Meta approves non-voting stock split and raises spending floor amid record AI investment
Meta Platforms reported third-quarter revenue of $64.6 billion alongside plans to issue a new class of non-voting stock to fund its massive artificial intelligence investments without diluting Mark Zuckerberg's voting control.
Meta Platforms approved the creation of a new Class C non-voting common stock designed to finance long-term artificial intelligence spending, potential acquisitions, and employee compensation. Under the plan, shareholders will receive one Class C share for every Class A or Class B share owned, functioning like a 2-for-1 stock split while preserving existing voting control, including Chief Executive Mark Zuckerberg's majority hold. The new stock class is scheduled to take effect on January 19, 2027, and trade on Nasdaq, though Meta's chief financial officer noted the company currently has no specific financing plans to announce.[3][4][5][9][10][18][20]
The corporate restructuring accompanied third-quarter financial results where Meta brought in $64.60 billion in revenue, up 26% year-over-year from $51.2 billion and exceeding analyst consensus. Growth was propelled by advertising revenue of $63.06 billion, with average ad prices rising 14%. Zuckerberg credited momentum in the core business to AI deployments and pointed to milestones including the rollout of its Muse AI agent and its first frontier model, Muse Wonder.[1][3][7][12][19]
Despite top-line expansion, operating income dropped to $12.99 billion and diluted earnings per share fell to $3.83, missing analyst forecasts primarily due to a $9.89 billion settlement charge with U.S. state attorneys general. Surging infrastructure expenses also tipped Meta into negative free cash flow of $2.12 billion for the quarter—its first cash burn in over a decade—following $34.91 billion in quarterly capital expenditures.[2][3][8][11][14][17]
Meta reaffirmed its commitment to escalating computing infrastructure by narrowing its 2026 capital expenditure guidance to between $135 billion and $145 billion, raising the lower bound from $130 billion. Looking ahead, Meta projected fourth-quarter revenue in the range of $73 billion to $76 billion.[3][13][15][16]
Key facts
- Meta reported Q3 2026 revenue of $64.60 billion, up 26% year-over-year, beating analyst expectations.
- Operating income was $12.99 billion and EPS was $3.83, missing estimates due to a $9.89 billion charge tied to a settlement with U.S. State Attorneys General.
- Meta posted negative free cash flow of $2.12 billion, marking its first negative free cash flow in over a decade as quarterly CapEx reached $34.91 billion.
- Meta created a new Class C non-voting share class taking effect January 19, 2027, distributing one Class C share for each Class A or B share held as a 2-for-1 split structure.
- The non-voting Class C shares will trade on Nasdaq and enable Meta to raise capital, fund acquisitions, and compensate employees without diluting Mark Zuckerberg's voting control.
- Meta narrowed its full-year 2026 capital expenditure outlook to $135 billion to $145 billion, raising the lower end from $130 billion, and guided Q4 revenue to $73 billion to $76 billion.
Sources · 15 sources
- FI
Finimize@finimizePost on X ·
What you need to know about markets today 👇 1️⃣ Meta beat sales expectations, easing investors’ worries about its huge AI spending plans. Its ad business offers clues that AI investment is paying off, while its assistant Muse could open up a new revenue stream – though neither opportunity is a sure bet. 2️⃣ France’s unrest and mounting debt troubles are rattling markets, while stubborn inflation is squeezing Europe and Britain. With borrowing costs climbing and stocks under pressure, government bonds are starting to look more attractive to investors seeking alternatives to AI-heavy markets.
Open source - UW
unusual_whales@unusual_whalesPost on X ·
BREAKING: $META has posted its first negative Free Cash Flow in more than a decade
Open source - WS
Wall St Engine@wallstenginePost on X ·
$META Platforms Q3’26 Earnings Highlights 🔹 Revenue: $64.60B (Est. $63.33B) 🟢; +26% YoY 🔹 EPS: $3.83 (Est. $5.89) 🔴; +265% YoY 🔹 DAP: 3.64B; +3% YoY Guide: 🔹 FY26 CapEx: $135B-$145B (Est. $132.08B) 🔹 Q4 Revenue: $73.00B-$76.00B (Est. $73.68B) 🟡 🔹 FY26 Expenses: $175B-$179B 🔹 FY26 Oper. Income: Above 2025 operating income 🔹 Q4 Tax Rate: 15%-17% Segment Revenue: 🔹 Advertising Revenue: $63.06B; +26% YoY 🔹 Family of Apps Revenue: $64.16B 🔹 Reality Labs Revenue: $443M Segment Operating Income: 🔹 Family of Apps: $17.12B 🔹 Reality Labs: ($4.13B) Other Q3 Metrics: 🔹 Ad Impressions: +10% YoY 🔹 Avg. Price per Ad: +14% YoY 🔹 Headcount: 66,775; -15% YoY 🔹 CapEx: $34.91B (Est. $39.72B) 🔹 Operating Cash Flow: $32.79B 🔹 Free Cash Flow: -$2.12B 🔹 Dividend & Equivalents: $1.36B 🔹 Cash & Marketable Securities: $82.45B Financials: 🔹 Oper. Income: $12.99B (Est. $18.66B) 🔴 🔹 Operating Margin: 20%; vs 40% LY 🔹 Net Income: $9.86B (Est. $15.44B) 🔴; +264% YoY 🔹 Long-Term Debt: $80.92B Key Updates: 🔸 Charges related to agreement with U.S. State Attorneys General: $9.9B 🔸 FY26 capex outlook narrowed from $130B-$145B 🔸 New Class C common stock approved, with an effective date in January 2027 🔸 One-time stock dividend of one Class C share for each outstanding Class A and Class B share CEO Commentary: 🔸 “We hit major milestones this quarter toward delivering personal superintelligence for everyone - including launching Muse and Muse Wonder, our first frontier model,” 🔸 “Our investments are paying off, the core business is strong, and we're seeing velocity across the board.”
Open source - FT
Financial Times@FTPost on X ·
Breaking news: Meta plans to create a new class of non-voting shares, allowing it to sell stock to fund its AI spending without diluting Mark Zuckerberg’s control of the company. https://t.co/AoDiFPeF2x https://t.co/bbvVf7IAFb
Open source - WS
Wall St Engine@wallstenginePost on X ·
$META CFO says its new nonvoting Class C shares will effectively create a 2-for-1 stock split while preserving existing shareholders' voting power. “We don't have any specific financing plans to announce at this time.” The shares could be used to raise capital in the future. https://t.co/RRCUAaikCF
Open source - WG
Watcher.Guru@WatcherGuruPost on X ·
JUST IN: $META reports $64.6 billion in revenue for Q3 2026, beating expectations.
Open source - AI
Analytics Insight@analyticsinmePost on X ·
𝐌𝐞𝐭𝐚’𝐬 𝐌𝐮𝐬𝐞 𝐀𝐈: 𝐔𝐒𝐃 𝟏𝟒𝟓 𝐁𝐢𝐥𝐥𝐢𝐨𝐧 𝐒𝐩𝐞𝐧𝐝𝐢𝐧𝐠 𝐏𝐥𝐚𝐧, 𝐍𝐞𝐰 𝐒𝐡𝐚𝐫𝐞𝐬 𝐢𝐧 𝟐𝟎𝟐𝟕 Meta is betting big on Muse as its next major AI platform. The company plans new non-voting Class C shares to support AI expansion while preserving Mark Zuckerberg’s control. With Muse crossing 10 million accounts and AI spending rising, the challenge is turning early adoption into lasting revenue. #Meta #MuseAI #ArtificialIntelligence #MetaStock #AIInvestment #AI #AINews #AnalyticsInsight #AnalyticsInsightMagazine Read More 👇 https://t.co/X5jb9ajEqv
Open source - TR
TrendSpider@TrendSpiderPost on X ·
META $META REPORTS NEGATIVE FREE CASH FLOW FOR THE FIRST TIME SINCE 2012 AS CAPEX GROWS TO $35B IN Q3 https://t.co/dezQuEGAQM
Open source - TE
TechmemeArticle ·
Meta says it will create a new class of nonvoting stock to raise the capital it needs for developing AI models, with an effective date in January 2027 (Meghan Bobrowsky/Wall Street Journal) Meghan Bobrowsky / Wall Street Journal : Meta says it will create a new class of nonvoting stock to raise the capital it needs for developing AI models, with an effective date in January 2027 — The company, which reported record revenue of $64.2 billion for the third quarter, said the new stock won't affect Mark Zuckerberg's voting control
Open source - WS
Wall St Engine@wallstenginePost on X ·
$META CONFIRMS NEW NONVOTING SHARES TO FUND AI EXPANSION Meta announced it is creating a new Class C stock with no voting rights, allowing the company to raise money for AI investments, acquisitions, and employee compensation without reducing Mark Zuckerberg's voting control. Existing shareholders will receive one new Class C share for every Class A or Class B share they own. Meta says the distribution will have an effect similar to a 2-for-1 stock split on its current Class A share price, while leaving voting power unchanged. The new stock class takes effect January 19, 2027, with plans to list the shares on Nasdaq. The move comes as Meta expects capital expenditures of $135 billion to $145 billion in 2026, driven largely by its AI infrastructure expansion.
Open source - BT
Bull Theory@BullTheoryioPost on X ·
BREAKING: $META is up 4% after hours as it reports $64.60 billion in Q3 revenue, beating expectations. A $9.89 billion legal charge cut operating income to $12.99 billion, below the $20.85 billion expected. Free cash flow was negative $2.12 billion as capex hit $34.91 billion. https://t.co/yPLaqSxSjP
Open source - TR
TrendSpider@TrendSpiderPost on X ·
$META CEO MARK ZUCKERBERG: "OUR INVESTMENTS ARE PAYING OFF, THE CORE BUSINESS IS STRONG, AND WE'RE SEEING VELOCITY ACROSS THE BOARD." https://t.co/nyQgASnP5R
Open source - JW
Joe Weisenthal@TheStalwartPost on X ·
$META's new CAPEX outlook is roughly inline with its old CAPEX outlook, which is fine. But for the last few years, we've been accustomed to companies underestimating their future spending plans. *META SEES FY CAPEX $135B TO $145B, SAW $130B TO $145B
Open source - R�
RuntimeWire 🏴☠️@runtimewirePost on X ·
Meta posted $64.6B in Q3 revenue, up 26% as AI-driven ads surge. EPS $3.83 (would be $7.40 excluding a $9.89B state AG settlement). Q4 guide $73-76B. $META https://t.co/1wk0r6k8f3 Source: Meta Platforms https://t.co/2XKOkY17OO
Open source - AG
AGTP@AGTPinsightsPost on X ·
BREAKING: Meta raises its 2026 capital spending outlook to $135B-$145B, up from $130B at the low end, and plans a new class of nonvoting stock as it escalates its AI bet. https://t.co/4Fbl0QYEIa
Open source - TE
TechmemeArticle ·
Meta expects its 2026 capex to be $135B-$145B, vs. $130B-$145B previously, and forecasts Q4 revenue of $73B-$76B, vs. $73.6B est.; META jumps 3%+ after hours (Riley Griffin/Bloomberg) Riley Griffin / Bloomberg : Meta expects its 2026 capex to be $135B-$145B, vs. $130B-$145B previously, and forecasts Q4 revenue of $73B-$76B, vs. $73.6B est.; META jumps 3%+ after hours — The Takeaways From Meta's Earnings and AI Spending Plans — Video Player is loading. — Unmute — Current Time 0:01 Loaded: 16.14% Playback Rate
Open source - TV
The Verge@vergePost on X ·
Meta's third-quarter earnings report shows it spent $9.89 billion paying for its settlement with US attorney generals. https://t.co/Jyo31O9R1p
Open source - EV
Evan@StockMKTNewzPost on X ·
META $META JUST CONFIRMED IT'S CREATING A NEW CLASS OF STOCK WITH NO VOTING RIGHTS Every shareholder will get one new non-voting Class C share for each share they own. Meta says that works like a 2-for-1 stock split for the price of its current shares. The new class takes effect Jan. 19, 2027, and will trade on Nasdaq. Meta says it will use the shares to raise money for AI, pay employees, and fund acquisitions, without changing anyone's voting power.
Open source - EV
Evan@StockMKTNewzPost on X ·
Meta Platforms $META just brought in $64.6 Billion of revenue this past quarter up from $51.2B in the same quarter last year https://t.co/cN4BmeNIcz
Open source - DE
DecryptArticle ·
Meta Creates Non-Voting Stock to Fund AI Buildout, Keeping Zuckerberg in Control Meta will hand shareholders a free non-voting share for every share they own in January, giving it a way to raise equity for AI spending without diluting Zuckerberg's 60.6% vote.
Open source