Meta drops 11% after lifting 2026 AI spending to as much as $145B
What's new: Free cash flow fell to $784 million, and Meta projected third-quarter revenue of $61 billion to $64 billion.
Meta shares fell about 11% after the Facebook and Instagram parent raised its 2026 capital spending forecast to $130 billion to $145 billion, largely for AI infrastructure, and gave a softer third-quarter revenue outlook. The company reported April-to-June revenue of $61 billion, up 28% from a year earlier, while profit fell 14% to $6 billion. Free cash flow dropped to $784 million, its lowest level in years, as data center and other AI costs climbed. Chief Executive Mark Zuckerberg argued the spending is improving ad tools and engagement and could support new businesses, including selling AI tools, computing capacity and agents to other companies.