Meta narrows 2026 capex range, raises expense outlook after litigation charge
Q3 EPS of $7.40 beats estimates while revenue of $64.60bn comes in just short of forecasts
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Chart: META, one-minute prices, three sessions
UpdateWednesday, October 21, 2026 at 7:35 PM ET
Meta said it plans to issue nonvoting shares and sell additional stock, a step toward raising capital specifically to help fund its AI infrastructure buildout.
Meta Platforms reported third-quarter earnings per share of $7.40 excluding a litigation charge, $1.40 above estimates. Revenue was $64.60bn, just short of the $64.69bn expected.
The company raised its full-year 2026 total expense outlook to a range of $175bn to $179bn, to reflect a $9.9bn litigation charge. It narrowed its 2026 capital expenditure outlook, including finance lease principal payments, to $135bn to $145bn, from a prior range of $130bn to $145bn.
For the fourth quarter, Meta expects total revenue of $73bn to $76bn, with foreign currency a roughly 1% headwind to year-over-year growth. It expects a fourth-quarter tax rate of 15% to 17%, absent changes to the tax landscape. Reality Labs losses are expected to reach $18bn to $19bn in 2026, narrowing to around $15bn in 2027 as investment shifts toward AI.
Mark Zuckerberg, founder and chief executive, said Meta's AI investments are paying off and that the core business is strong, with what he called "velocity across the board." He had defended the pace of that spending against slowdown concerns on October 12. With revenue now essentially in line and EPS ahead of estimates, the core business is funding that spending: the narrowed capex range puts a number on investment Meta had already flagged, the litigation charge now shows up directly in the raised expense outlook, and the widening Reality Labs loss extends a pattern in which AI investment is absorbing near-term profit while its payoff in revenue remains unproven.
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