Meta posts 26% revenue growth but first quarterly negative free cash flow since IPO
Meta Platforms reported Q3 2026 revenue of $64.6 billion, up 26% year‑over‑year on a reported basis. Total expenses rose 68% year‑over‑year to $51.6 billion, including a $9.9 billion legal charge, driving GAAP operating income down 37% to $13 billion. Free cash flow was negative $2.1 billion, the first quarterly cash burn since 2012, as capital expenditures of $34.9 billion exceeded operating cash flow. The company announced a 2‑for‑1 stock split creating a new class of non‑voting shares and guided Q4 revenue to $73‑$76 billion while raising FY26 expense guidance to $175‑$179 billion and capex guidance to $135‑$145 billion.
Why it matters
The negative free cash flow and higher capex guidance signal increased cash outflows that could pressure margins and affect liquidity (the company’s own release notes the capex raise). Analysts raised price targets, implying upside despite the cash burn.
Key facts
- 1Q3 2026 revenue was $64.6 billion, up 26% year‑over‑year on a reported basis. gurufocus.com
- 2Total expenses were $51.6 billion, up 68% year‑over‑year on a reported basis. gurufocus.com
- 3The $9.9 billion legal charge was included in Q3 expenses. gurufocus.com
- 4GAAP operating income was $13 billion, down 37% year‑over‑year on a reported basis. gurufocus.com
- 5Free cash flow was negative $2.1 billion (reported basis). gurufocus.com
- 6Capital expenditures were $34.9 billion in Q3. gurufocus.com
Summary written by AlphAI AI Desk from 7 of 7 sources. Not investment advice. Figures are as stated by the linked sources.