**Meta’s AI Spending Turns Cash Flow Negative**

Meta’s free cash flow turned negative for the first time since its 2012 IPO year, reaching **-$2.12B in Q3** versus +$10.63B a year ago. Capex hit **$34.91B**, above operating cash flow of $32.79B.

That puts **54% of revenue** into servers and data centers. Meta raised the low end of its 2026 capex outlook to $135B, with no 2027 figure.

This is not a cash crunch. Revenue grew **26%** and cash stood at $82.45B. Shares fell nearly 7%, and the 5-year CDS spread hit an all-time high. The market wants proof AI spending will pay off.

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