META$648.85▼ 7.0%Meta's record sales quarter came with a first since 2012: spending topped its cash flow
Meta reported a 26% jump in sales on Oct. 21. Its filings show the quarter's spending on buildings and equipment topped the cash its business brought in, and more is already committed.
KeyVex News··5 min readFact-checked against 5 public recordsKeyVex News··5 min readFact-checked against 5 public recordsMETA$648.85▼ 7.0%Close, Oct. 22. Prices from Tiingo.The short versionTap to readTap to close
- A company normally pays for new buildings and equipment out of the cash its business brings in. For 14 years, in every quarter, Meta's business brought in more than it spent on them.
- In the third quarter, Meta spent $33.94 billion on property and equipment, and its business brought in $32.79 billion. The last quarter like that was in 2012, the year it went public.
- When spending tops the cash a business makes, the gap comes from money on hand or borrowing. At Sept. 30, Meta had $82.45 billion of cash and securities and $84.00 billion of bonds outstanding.
- Already committed: about $355.73 billion of leases for data centers and more, not yet started at Sept. 30, its quarterly report shows. In August, it agreed to settle claims for up to about $18.59 billion.
- Meta expects $135 billion to $145 billion of capital spending this year. Its finance chief said it typically gives next year's outlook on its fourth-quarter call.
The quarter: Meta Platforms reported third-quarter sales of $64.60 billion after the market closed on Oct. 21, up 26% from a year earlier and its biggest quarter yet.Exhibit 99.1XBRL Its shares closed down 7.0% the next day, at $648.85.Prices The release also showed free cash flow, which Meta defines as cash from operations minus purchases of property and equipment and finance lease payments, at negative $2.12 billion.Exhibit 99.1
The record: Meta spent $33.94 billion on property and equipment in the quarter. Its 10-Q, the quarterly report companies file with the SEC, says it has significantly increased its infrastructure investments for its artificial intelligence work, including servers, data centers and network infrastructure. Its business brought in $32.79 billion of cash, its cash flow from operations.10-Q The last time its spending topped that cash in a quarter was April to June 2012, the quarter it went public as Facebook.XBRL2012 10-Q
Why it matters: More is already signed. As of Sept. 30, Meta had about $355.73 billion of leases for data centers, energy-related infrastructure, colocations and network infrastructure that had not started yet, its 10-Q shows. They are set to start between now and 2036, for terms of up to 30 years.10-Q
Meta's stock and the story's key datesDaily close, April 1 to Oct. 22, 2026 ▲ 12.0%Show chartHide chart
- 1April 29, 2026 First-quarter results. Meta raised its 2026 capital spending outlook to $125 billion to $145 billion.
- 2July 29, 2026 Second-quarter results. Cash from operations was $31.86 billion; purchases of property and equipment were $30.12 billion.
- 3Oct. 21, 2026 Third-quarter results, after the close. Free cash flow was negative $2.12 billion. The same day, a New Mexico court set a $25 billion penalty.
- 4Oct. 22, 2026 The next day's close. $648.85, down 7.0% from $697.52.
View the data (142 trading days)
| Date | Close | Day change |
|---|---|---|
| 2026-10-22 | $648.85 | −7.0% |
| 2026-10-21 | $697.52 | +0.5% |
| 2026-10-20 | $694.25 | −1.6% |
| 2026-10-19 | $705.44 | −0.5% |
| 2026-10-16 | $709.33 | −3.7% |
| 2026-10-15 | $736.72 | −0.1% |
| 2026-10-14 | $737.54 | −3.3% |
| 2026-10-13 | $762.50 | +2.6% |
| 2026-10-12 | $742.96 | +3.4% |
| 2026-10-09 | $718.67 | −0.3% |
| 2026-10-08 | $720.89 | −0.1% |
| 2026-10-07 | $721.31 | −2.4% |
| 2026-10-06 | $738.88 | −0.4% |
| 2026-10-05 | $741.90 | +1.9% |
| 2026-10-02 | $728.08 | +0.3% |
| 2026-10-01 | $725.93 | +0.1% |
| 2026-09-30 | $725.18 | −1.8% |
| 2026-09-29 | $738.79 | +3.2% |
| 2026-09-28 | $715.62 | −4.8% |
| 2026-09-25 | $751.66 | −3.3% |
| 2026-09-24 | $777.59 | +4.5% |
| 2026-09-23 | $744.10 | +1.0% |
| 2026-09-22 | $736.60 | −0.6% |
| 2026-09-21 | $741.25 | +11.3% |
| 2026-09-18 | $665.75 | −2.4% |
| 2026-09-17 | $682.31 | +1.3% |
| 2026-09-16 | $673.31 | +0.5% |
| 2026-09-15 | $670.24 | +0.7% |
| 2026-09-14 | $665.60 | +2.7% |
| 2026-09-11 | $648.03 | +0.6% |
| 2026-09-10 | $644.38 | −1.4% |
| 2026-09-09 | $653.69 | +6.6% |
| 2026-09-08 | $613.48 | −0.5% |
| 2026-09-04 | $616.77 | +1.0% |
| 2026-09-03 | $610.68 | +3.0% |
| 2026-09-02 | $592.85 | +2.5% |
| 2026-09-01 | $578.54 | +1.1% |
| 2026-08-31 | $572.34 | −1.0% |
| 2026-08-28 | $578.02 | +1.2% |
| 2026-08-27 | $571.10 | −0.9% |
| 2026-08-26 | $576.14 | +1.1% |
| 2026-08-25 | $570.05 | +2.0% |
| 2026-08-24 | $559.02 | +1.7% |
| 2026-08-21 | $549.90 | +0.7% |
| 2026-08-20 | $545.83 | 0.0% |
| 2026-08-19 | $546.03 | +0.4% |
| 2026-08-18 | $543.67 | −4.4% |
| 2026-08-17 | $568.97 | −3.5% |
| 2026-08-14 | $589.85 | −0.9% |
| 2026-08-13 | $594.97 | +2.8% |
| 2026-08-12 | $578.85 | −3.4% |
| 2026-08-11 | $599.12 | +0.7% |
| 2026-08-10 | $594.92 | +0.5% |
| 2026-08-07 | $592.10 | +0.4% |
| 2026-08-06 | $589.90 | +0.2% |
| 2026-08-05 | $588.77 | +0.1% |
| 2026-08-04 | $587.94 | −0.4% |
| 2026-08-03 | $590.24 | +6.0% |
| 2026-07-31 | $556.71 | +3.3% |
| 2026-07-30 | $539.03 | −8.0% |
| 2026-07-29 | $585.61 | −1.3% |
| 2026-07-28 | $593.41 | −0.1% |
| 2026-07-27 | $593.87 | −0.2% |
| 2026-07-24 | $595.19 | −1.8% |
| 2026-07-23 | $606.10 | −3.4% |
| 2026-07-22 | $627.17 | −2.6% |
| 2026-07-21 | $643.81 | −0.3% |
| 2026-07-20 | $645.85 | 0.0% |
| 2026-07-17 | $646.01 | −2.8% |
| 2026-07-16 | $664.54 | −2.5% |
| 2026-07-15 | $681.31 | +3.1% |
| 2026-07-14 | $661.04 | +0.7% |
| 2026-07-13 | $656.73 | −1.9% |
| 2026-07-10 | $669.21 | +6.0% |
| 2026-07-09 | $631.48 | +4.7% |
| 2026-07-08 | $603.12 | −2.0% |
| 2026-07-07 | $615.58 | +2.5% |
| 2026-07-06 | $600.29 | +3.0% |
| 2026-07-02 | $582.90 | −4.9% |
| 2026-07-01 | $612.91 | +8.8% |
| 2026-06-30 | $563.29 | +0.1% |
| 2026-06-29 | $562.60 | +2.2% |
| 2026-06-26 | $550.25 | +1.4% |
| 2026-06-25 | $542.87 | −2.7% |
| 2026-06-24 | $557.67 | −0.8% |
| 2026-06-23 | $562.20 | −0.3% |
| 2026-06-22 | $563.85 | −2.3% |
| 2026-06-18 | $577.22 | +1.7% |
| 2026-06-17 | $567.58 | −5.4% |
| 2026-06-16 | $600.21 | +1.1% |
| 2026-06-15 | $593.48 | +4.7% |
| 2026-06-12 | $566.98 | −0.3% |
| 2026-06-11 | $568.43 | −0.4% |
| 2026-06-10 | $570.98 | −2.3% |
| 2026-06-09 | $584.59 | −0.1% |
| 2026-06-08 | $585.39 | −1.3% |
| 2026-06-05 | $593.00 | −5.5% |
| 2026-06-04 | $627.57 | +0.7% |
| 2026-06-03 | $622.98 | +4.2% |
| 2026-06-02 | $597.63 | −0.5% |
| 2026-06-01 | $600.47 | −5.1% |
| 2026-05-29 | $632.51 | −0.4% |
| 2026-05-28 | $635.29 | 0.0% |
| 2026-05-27 | $635.25 | +3.7% |
| 2026-05-26 | $612.34 | +0.3% |
| 2026-05-22 | $610.26 | +0.5% |
| 2026-05-21 | $607.38 | +0.4% |
| 2026-05-20 | $605.06 | +0.4% |
| 2026-05-19 | $602.61 | −1.4% |
| 2026-05-18 | $611.21 | −0.5% |
| 2026-05-15 | $614.23 | −0.7% |
| 2026-05-14 | $618.43 | +0.3% |
| 2026-05-13 | $616.63 | +2.3% |
| 2026-05-12 | $603.00 | +0.7% |
| 2026-05-11 | $598.86 | −1.8% |
| 2026-05-08 | $609.63 | −1.2% |
| 2026-05-07 | $616.81 | +0.6% |
| 2026-05-06 | $612.88 | +1.3% |
| 2026-05-05 | $604.96 | −0.9% |
| 2026-05-04 | $610.41 | +0.3% |
| 2026-05-01 | $608.75 | −0.5% |
| 2026-04-30 | $611.91 | −8.6% |
| 2026-04-29 | $669.12 | −0.3% |
| 2026-04-28 | $671.34 | −1.1% |
| 2026-04-27 | $678.62 | +0.5% |
| 2026-04-24 | $675.03 | +2.4% |
| 2026-04-23 | $659.15 | −2.3% |
| 2026-04-22 | $674.72 | +0.9% |
| 2026-04-21 | $668.84 | −0.3% |
| 2026-04-20 | $670.91 | −2.6% |
| 2026-04-17 | $688.55 | +1.7% |
| 2026-04-16 | $676.87 | +0.8% |
| 2026-04-15 | $671.58 | +1.4% |
| 2026-04-14 | $662.49 | +4.4% |
| 2026-04-13 | $634.53 | +0.7% |
| 2026-04-10 | $629.86 | +0.2% |
| 2026-04-09 | $628.39 | +2.6% |
| 2026-04-08 | $612.42 | +6.5% |
| 2026-04-07 | $575.05 | +0.4% |
| 2026-04-06 | $573.02 | −0.3% |
| 2026-04-02 | $574.46 | −0.8% |
| 2026-04-01 | $579.23 |
Meta closed at $648.85 on Oct. 22, after its results. Source: Tiingo end-of-day closes, as traded, via KeyVex.
How the lines crossed
In the third quarter of 2023, Meta's business brought in $20.4 billion of cash and it spent $6.5 billion on property and equipment. Since then, that spending has grown about five times over, and the cash by about 60%.XBRL
The gap nearly closed in the second quarter of this year, at $31.86 billion of cash against $30.12 billion of spending. In the third quarter, the spending came out ahead.XBRL10-Q
View the data
| Quarter | Cash from operations | Spent on property and equipment |
|---|---|---|
| Q3 2026 | $32.8B | $33.9B |
| Q2 2026 | $31.9B | $30.1B |
| Q1 2026 | $32.2B | $19.0B |
| Q4 2025 | $36.2B | $21.4B |
| Q3 2025 | $30.0B | $18.8B |
| Q2 2025 | $25.6B | $16.5B |
| Q1 2025 | $24.0B | $12.9B |
| Q4 2024 | $28.0B | $14.4B |
| Q3 2024 | $24.7B | $8.3B |
| Q2 2024 | $19.4B | $8.2B |
| Q1 2024 | $19.2B | $6.4B |
| Q4 2023 | $19.4B | $7.6B |
| Q3 2023 | $20.4B | $6.5B |
| Q2 2023 | $17.3B | $6.1B |
| Q1 2023 | $14.0B | $6.8B |
Source: Meta's 10-Q and 10-K filings via SEC XBRL data; fourth quarters are the full year less the first nine months. KeyVex's arrangement.
Meta also counts payments on its finance leases, long-term leases it records much like a purchase, as capital spending. They were $964 million in the quarter, which brings its capital spending to $34.91 billion. It paid $1.36 billion in dividends.Exhibit 99.1
Meta's third quarter: the cash in and what went outShow chartHide chart
View the data
| Third quarter | $ billions | Note |
|---|---|---|
| Cash from operations (Q3 2026) | $32.79B | $32,786 million |
| Purchases of property and equipment (Q3 2026) | $33.94B | $33,942 million |
| Principal payments on finance leases (Q3 2026) | $0.96B | $964 million; Meta counts it as capital spending |
| Dividends paid (Q3 2026) | $1.36B | $1,361 million |
| Stock bought back (Q3 2026) | $0.00B | None; $3.33 billion a year earlier |
Source: Meta Form 10-Q and earnings release, quarter ended Sept. 30, 2026.
Cash, debt and buybacks
Meta raised $24.91 billion, after costs, from a bond sale in May. At Sept. 30 it had $84.00 billion of bonds outstanding, the 10-Q says, and $82.45 billion of cash and marketable securities, investments it can sell quickly.10-Q
It had not bought back a share this year through Sept. 30, after $3.33 billion of buybacks in the third quarter of 2025.Exhibit 99.1 The board's buyback authorization still had $25.03 billion unused at Sept. 30, the same as at the start of the year.10-Q
The 10-Q says Meta expects its funds, its cash flow and financing to cover its needs, and that "from time to time" it expects to raise capital through debt, equity or other financing.10-Q Asked on the call about sources of capital, finance chief Susan Li said Meta has no specific financing plans to announce at this time.Call
What is still to come
For this year alone, Meta expects $135 billion to $145 billion of capital spending. It spent $85.82 billion in the first nine months, so the forecast leaves about $49 billion to $59 billion for the fourth quarter, by KeyVex's math.Exhibit 99.110-Q
Then come the legal bills. In August, Meta agreed with 52 attorneys general to pay up to about $18.59 billion, mainly over teen mental health claims, about $12.7 billion of it in yearly installments over 10 years. It took a $9.89 billion charge for that in the quarter.10-Q
On Oct. 21, a New Mexico court set a $25 billion civil penalty in the state's case over how Facebook handled user data, which grew to include content moderation claims, the 10-Q says. The penalty carries 15% interest from the judgment.10-Q "We are confident we will prevail on appeal," Meta's chief legal officer, C.J. Mahoney, said, the Associated Press reported.AP
The other side
Meta expects fourth-quarter sales of $73 billion to $76 billion. It says that, excluding the legal charge, its 2026 operating income will still top 2025's. Over the first nine months, its free cash flow was still positive, at $11.05 billion.Exhibit 99.1
Li said on the call that Meta's AI investments are already bringing in more ad revenue, while its investments in Meta Superintelligence Labs "will take longer to generate returns than those in our core business." For 2027, she said, Meta expects "to continue investing aggressively." The fourth-quarter call, she said, is typically when it gives next year's outlook.Call
What to watch
A combined trial of the next two personal-injury test cases claiming Facebook and Instagram harm young users is set to begin, per the 10-Q; more are set for March 16 and Aug. 6, 2027.
Meta's new non-voting Class C stock is set to be created. Meta's 10-Q says it expects to use those shares "to conduct equity offerings from time to time."
$2.75 billion of Meta's bonds come due; the rest of its $84.00 billion mature through 2066.
The paper trail
Meta's SEC filings cited here, with the time EDGAR accepted each one.
| Filed (ET) | Form | Filer | What it shows |
|---|---|---|---|
| Oct. 21, 2026, 4:03 p.m. | 8-K | Meta | Third-quarter results, free cash flow and the 2026 outlook (Exhibit 99.1). |
| Oct. 21, 2026, 8:00 p.m. | 10-Q | Meta | Cash flow statement, debt, leases not yet started, legal proceedings. |
| July 31, 2012 | 10-Q | The last quarter, until now, in which spending on property and equipment topped cash from operations. |
Sources
8 sources, 5 of them public records
Public records
- Meta Platforms, Inc., Form 10-Q for the quarter ended Sept. 30, 2026 (accepted Oct. 21, filed Oct. 22)SEC EDGAR · Oct. 22, 2026
- Meta Platforms, Inc., Form 8-K: third-quarter 2026 resultsSEC EDGAR · Oct. 21, 2026
- Meta Platforms, Inc., Form 8-K, Exhibit 99.1: third-quarter 2026 resultsSEC EDGAR · Oct. 21, 2026
- Facebook, Inc., Form 10-Q for the quarter ended June 30, 2012SEC EDGAR · July 31, 2012
- Meta Platforms, Inc., XBRL company facts: cash from operations and purchases of property and equipment, 2011 to 2026SEC · through Oct. 22, 2026
Reporting
- Meta (META) Q3 2026 earnings call transcriptThe Motley Fool · Oct. 21, 2026
- "Meta ordered to pay New Mexico $25 billion for deceiving users about privacy on Facebook" (Mikella Schuettler)Associated Press, via Anchorage Daily News · Oct. 21, 2026
Data
- End-of-day prices for META, SPY and QQQ (Tiingo)KeyVex · through Oct. 22, 2026
How we got these numbers
- Prices are end-of-day closes as traded, not adjusted for dividends. Daily moves are close to close. The S&P 500 and Nasdaq 100 lines follow SPY and QQQ, also as traded, rebased to Meta's close at the start of the range shown. The Filings switch shows the filing markers from KeyVex's Meta stock page, a selection of congressional trades, insider sales, Form 144 notices, 8-Ks and lobbying filings: not every filing, and not only those tied to this story.
- Quarterly cash from operations (NetCashProvidedByUsedInOperatingActivities) and purchases of property and equipment (PaymentsToAcquirePropertyPlantAndEquipment) come from Meta's XBRL company facts at the SEC. Cash-flow figures in 10-Qs are year-to-date, so each quarter is the year-to-date figure less the prior one; fourth quarters are the 10-K full year less the first nine months. We checked every reported quarter from the third quarter of 2011 through the third quarter of 2026. Spending topped cash from operations in only three: the first and second quarters of 2012 ($441 million against $453 million, from the 2013 first-quarter 10-Q's comparison figures; $242 million against $413 million, from the 10-Q filed July 31, 2012) and the third quarter of 2026. The second quarter of 2012 is the quarter Facebook went public: its initial public offering was in May 2012, Meta's 10-Q says.
- Meta's free cash flow is its own measure: cash from operations, less purchases of property and equipment, less principal payments on finance leases. The third quarter's figure, negative $2.12 billion, is Meta's. The fourth-quarter range is KeyVex's math: Meta's 2026 capital spending outlook of $135 billion to $145 billion (which includes finance lease payments), less $85.82 billion spent in the first nine months.
- Exact figures, third quarter of 2026: revenue $64,601 million; cash from operations $32,786 million; purchases of property and equipment $33,942 million; principal payments on finance leases $964 million; free cash flow negative $2,120 million; dividends and dividend equivalents $1,361 million; no buybacks. At Sept. 30, 2026: cash, cash equivalents and marketable securities $82.45 billion; notes outstanding $84.00 billion aggregate principal; long-term debt on the balance sheet $80.92 billion; leases not yet commenced about $355.73 billion. Nine months: purchases of property and equipment $83,055 million and finance lease principal $2,769 million, $85.82 billion together; net bond proceeds $24,910 million.
- The header image was generated for KeyVex by an image model. It is an illustration of a data center under construction with Meta's logo, not a photograph of a real Meta site. This is a reading of Meta's filings, not investment advice.