- Meta shares fell nearly 7% on Thursday, October 22, 2026, after Q3 results showed negative free cash flow.
- Q3 free cash flow came in at negative $2.12 billion.
- Meta raised the bottom of its FY26 capex range to $135 billion to $145 billion from $130 billion.
- Five-year credit default swap spreads on Meta reached all-time highs, signaling growing investor credit concern.
- Q3 revenue rose 26% to $64.60 billion, above the $63.37 billion analysts expected; EPS of $3.83 was not clearly comparable with the $5.75 Wall Street expected.
- Meta reported a $9.89 billion litigation charge and introduced a new nonvoting Class C stock class.
- Shares were on track for a third consecutive drop of more than 5% after earnings.
Quotes
“provide Meta the ability to finance its growth.”
“Free cash flow came in at a negative $2.12 billion during the quarter.”