Meta Sets $135 Billion to $145 Billion 2026 Capital Spending Range as Tesla Profit Falls

The Nasdaq Composite fell 694 points, or 2.6%, to 26,008.86 on Thursday, Oct. 22, during a week of mixed technology company earnings. Meta reported revenue growth and a higher lower end to its 2026 capital-spending forecast, while Tesla reported lower third-quarter net income and diluted earnings per share.

Meta’s third-quarter revenue rose 26% from a year earlier to $64.601 billion. Meta reported diluted earnings per share of $3.83. Its results included a $9.89 billion legal charge; Meta said earnings per share would have been $7.40 without the charge.

Meta spent $34.91 billion on capital expenditures in the quarter. Its 2026 forecast was $135 billion to $145 billion, compared with a previous range of $130 billion to $145 billion.

Tesla’s third-quarter revenue was $28.046 billion, down from $28.095 billion a year earlier. Net income attributable to common stockholders fell to $787 million from $1.373 billion, and diluted earnings per share dropped to 22 cents from 39 cents. Tesla said it expected 2026 capital expenditures to exceed $20 billion.

Analysts raised concerns about whether heavy AI investment would produce sufficient returns, the concentration of market activity in AI stocks and uncertainty around Iran. Those were possible explanations for the selloff, not established causes. Jack Bowman, an analyst, wrote, “the bell seems to be tolling for return on invested capital metrics.”