Meta earnings put Big Tech’s AI spending bet under the microscope

Meta Platforms is scheduled to report third-quarter 2026 results on October 21, 2026, after the market closes. The numbers on the table Analysts expect quarterly revenue of approximately $63.3 billion to $63.4 billion. That would mark year-over-year growth of roughly 23% to 24%. Net income is expected to decline to about $15.44 billion, squeezed by two very large line items. The first is capital expenditure. Third-quarter capex is projected at $41 billion to $42 billion, which would be more than double the figure from a year earlier. The second weight is a potential legal charge of $10 billion connected to youth social media settlements. That charge is anticipated to hit the quarter’s results significantly. Zoom out to the full year and the spending gets bigger still. Analysts project 2026 capex between $130 billion and $145 billion, with further increases anticipated for 2027 if Meta’s new AI assistant keeps gaining ground. Enter Muse, the bright spot with a price tag That assistant is Muse, which Meta launched in early September 2026. It reached 10 million downloads within its first 40 days. Meta’s stock has underperformed the S&P 500 year-to-date, weighed down by concerns ab...