Meta lifts AI capex, adds new stock class

Meta Platforms (META) has raised its full-year 2026 capital expenditure guidance to a range of $135 billion to $145 billion, lifting the lower end of the range from $130 billion. The company linked the higher outlook to continued investment in artificial intelligence infrastructure, including data centers and computing capacity. Management described AI as a central driver of its long-term strategy and spending priorities.

In the third quarter of 2026, Meta (META) recorded capital expenditures of $34.9 billion, including principal payments on finance leases. The intensity of investment contributed to negative free cash flow of about -$2.1 billion for the quarter, underscoring the scale of the current buildout relative to cash generation.

Meta reported third-quarter 2026 revenue of $64.6 billion, representing 26% year-over-year growth. The company guided fourth-quarter revenue to a range of $73 billion to $76 billion, indicating expectations of continued top-line expansion. These figures frame the AI spending push against a backdrop of strong revenue momentum.

Management highlighted that AI-related initiatives are already contributing to performance, saying AI investments are delivering substantial incremental advertising revenue. Executives cited stronger user engagement, improved content recommendations and more efficient monetization as key benefits flowing from AI systems.

A focal point of Meta’s AI progress is Muse, a family of personal agents. More than 10 million people in the U.S. and Canada have set up Muse personal agents in roughly six weeks of availability, with about a quarter of those users engaging with Muse on any given day. The company is building computing capacity with the goal of supporting more than 1 billion Muse users over the next few years.

Meta noted that computing costs are a key constraint on scaling AI services. The elevated capital spending plans are aimed at expanding data center capacity and related infrastructure to support both current AI products and future growth in usage.

To support ongoing AI and infrastructure investment without altering voting control, Meta announced the creation of a publicly listed, non-voting Class C common stock. The company plans a one-time stock dividend of one Class C share for each outstanding Class A and Class B share. The distribution is contingent on an amended certificate of incorporation that is expected to take effect in January 2027.

Meta said the new Class C stock is intended to provide additional flexibility to raise financing, fund AI infrastructure, support employee compensation and pursue acquisitions, while preserving existing voting power. The move complements the company’s increased capex guidance and underscores its intention to maintain a high level of AI-related investment over the coming years.