Meta announces up to $95 billion equity raise to fund AI expansion
Meta Platforms said it will raise up to $95 billion through a new Class C share offering to finance its artificial‑intelligence investments. The company reported third‑quarter 2026 revenue of $64.6 billion, a 26 % year‑over‑year increase, and generated $97 billion of operating cash flow in the first nine months, while free cash flow turned negative at $2.12 billion. Analysts from Wedbush, Wells Fargo, RBC Capital Markets and Yorkville reiterated Outperform or Overweight ratings, setting price targets between $800 and $995.
Why it matters
The equity raise is intended to cover Meta’s projected $60‑$80 billion financing gap for 2027, reducing immediate funding concerns but potentially diluting existing shareholders. Analysts note that the negative free cash flow and large capital‑expenditure plan create uncertainty about the returns on the AI spend.
Key facts
- 1Meta reported Q3 2026 revenue of $64.6 billion, up 26 % YoY. investing.com
- 2Long‑term debt rose to $80.9 billion at the end of Q3 2026. investing.com
- 3Operating cash flow for the first nine months of 2026 was $97 billion. investing.com
- 4Capital expenditures, including finance leases, reached $85.8 billion in the first nine months of 2026. investing.com
- 5Free cash flow turned negative at $2.12 billion in Q3 2026. investing.com
- 6Meta plans to raise up to $95 billion through a new equity offering. tradingview.com
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.