NEW YORK, July 17, 2026, 15:11 EDT. Meta Platforms’ stock declined as the company’s projected midpoint for capital expenditures in 2026 moved above its anticipated operating cash flow for 2025.
- Meta shares were down 2.7% at $646.66 as U.S. markets stayed open.
- The 2026 capex midpoint represents 117% of the company’s 2025 operating cash flow.
- Meta will report second-quarter earnings after markets close on July 29.
Meta Platforms, Inc. NASDAQ:META dropped 2.7% on Friday, with shares trading at $646.66 in early afternoon activity.
The drop was part of a broader downturn. The Nasdaq lost 1.2%, led by notable weakness in communication-services stocks.
Nevertheless, Meta’s spending continues to draw scrutiny. The company’s 2026 midpoint for capital expenditures stands at $135 billion, while operating cash flow last year totalled $115.80 billion.
This means planned capex exceeds the total expected 2025 cash inflow by $19.20 billion. However, this is not a projection of a cash shortfall. Operating cash flow may rise this year.
The comparison highlights Meta’s challenge. Revenue from advertising needs to support almost twice as much annual capital expenditure.
“Cash flow is starting to be almost completely drained by capex,” said Alberto Conca, chief investment officer at LFG+ZEST, referring to hyperscalers. Reuters
The data highlights the large shift in Meta’s funding needs. Figures are calculated using rounded, company-provided numbers.
| Measure | Verified figure | Investor comparison |
|---|---|---|
| 2025 operating cash flow | $115.80 billion | Principal funding source |
| 2025 capital spending | $72.22 billion | Represents 62% of operating cash flow |
| 2026 capex guidance midpoint | $135.00 billion | Equivalent to 117% of 2025 operating cash flow |
| Q1 2026 advertising share | 97.7% | Primary driver of revenue |
Meta reported a 33% increase in first-quarter revenue, reaching $56.31 billion. Advertising accounted for $55.02 billion of that amount, representing 97.7% of total revenue.
Ad impressions climbed by 19%, while average prices were up 12%. These improvements continue to represent the most reliable short-term funding method for Meta’s infrastructure expansion.
The financial strain is apparent. Capital expenditure for the first quarter totalled $19.84 billion. Free cash flow, as defined by the company, stood at $12.39 billion.
Chief Financial Officer Susan Li stated in January that “Those investments have generally paid off,” referring to prior advertising and engagement initiatives. The drop on Friday indicates investors are seeking new proof.
Meta continues to project 2026 operating income above last year’s figure. The company kept its full-year expense forecast unchanged at $162 billion to $169 billion.
The company has forecasted second-quarter revenue between $58 billion and $61 billion. Meta will announce results following Wednesday’s closing bell on July 29.
Risks cited are softer advertising demand, increased costs for components and potential legal hurdles. Meta has cautioned that ongoing U.S. youth cases may lead to a significant financial loss.
Meta shares, priced at $646.66, are trading at about 23.5 times reported earnings. Beyond the valuation multiple, cash conversion remains a key issue.
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