Meta Announces Financing Plan of Up to $95 Billion, Offering Common and Preferred Shares
Key Facts
Meta announced a financing plan of up to $95 billion on October 26, 2026, to support its core business and emerging AI opportunities, linking its funding needs to its ambitions in the field. The company said the funds would help finance those plans, while The Guardian reported that Nvidia, AMD and Broadcom had expressed potential interest in buying shares as part of the offering. Purchases by the three companies could total $5 billion, but interest does not amount to a firm commitment to buy. The announcement details two different paths: two public offerings based on Class A shares and convertible preferred depositary shares, and a future at-the-market program linked to Class C shares. The plan has an overall cap of $95 billion, while the future program remains separate from the two offerings announced that day.
Meta has not yet set terms for the planned at-the-market program linked to Class C shares or entered into an agreement for it. The company’s statement that non-voting Class C shares allow it to raise capital “without diluting voting power” applies to the use of that class and does not automatically apply to other financing instruments. The terms of the preferred shares will be set at pricing, so their final effects on ownership or voting are not clear from the announcement alone.
The plan comes as Meta expands its spending on AI infrastructure while seeking to develop new products. The company said its AI investments are generating returns through increased engagement, improved ad performance and stronger monetization in its existing business. Areas it is working on include AI agents and smart glasses, according to The Guardian. The company also aims to support its core business and emerging opportunities, according to the financing plan announcement. The plan therefore combines funding for needs related to technological expansion with continued investment in Meta’s existing activities.
Third-quarter results provide financial context for the financing decision. Meta’s revenue was $64.60 billion, up 26% year over year, compared with $51.24 billion in the same period a year earlier. Revenue also exceeded Wall Street analysts’ expectations of $63.34 billion. For the fourth quarter, the company forecast revenue of between $73 billion and $76 billion, a range whose midpoint is above analysts’ estimates of $73.65 billion. These figures put the financing plan in the context of revenue growth and the company’s outlook for the next period, alongside its need to fund AI investment.
Meta shares rose 2% in premarket trading, according to a Guardian update at 12:49 Central European Time on October 26. That was a provisional figure in the update, not a final session close. Before the financing announcement, EL7 data showed the stock closed at $705.44 on October 19, then at $694.25 on October 20 and $697.52 on October 21. The close fell to $648.85 on October 22 and then to $642.62 on October 23, a move that preceded the announcement and does not represent a reaction to it. The company’s shares had closed up 0.5% in regular trading on October 21, then rose 2.9% in extended trading after the results announcement; their gain since the start of the year stood at 5.7% through the Associated Press report that day.