Meta forecasts revenue of $73 billion to $76 billion after quarterly sales growth
Key Facts
Meta forecast revenue of $73 billion to $76 billion for the fourth quarter of 2026, according to Investing.com, after reporting quarterly sales that exceeded Wall Street estimates. The forecast range compares with analysts' consensus of $73.57 billion for the same period, within the bounds set by the company. According to the Associated Press, third-quarter revenue reached $64.60 billion, against analysts' estimates of $63.34 billion. Sales rose 26% from the same period a year earlier, when the company reported revenue of $51.24 billion. The earnings beat coincided with continued growth in advertising activity in terms of ad impressions and average prices, according to figures reported by Investing.com. The new guidance puts revenue for the final quarter above third-quarter sales, even at the bottom of the forecast range.
The results follow a quarter in which Meta posted annual revenue growth of 28%, according to the Associated Press, exceeding the pace recorded in the third quarter. Sales in the second quarter of 2026 were about $60.8 billion, compared with $47.52 billion in the corresponding period a year earlier. Revenue thus increased between the second and third quarters, while its year-on-year growth rate slowed. In its previous quarterly earnings announcement, the company had forecast third-quarter revenue of $61 billion to $64 billion. The agency quoted Meta at the time as saying it "expects revenue in the range of $61 billion to $64 billion." Actual revenue exceeded the upper end of the guidance the company issued in July 2026, as well as analysts' estimates for the period.
In its advertising business, global ad impressions increased 10% year on year in the third quarter of 2026, according to Investing.com. Annual growth in this metric had reached 14% in the third quarter of 2025. The comparison means ad impressions continued to expand, but at a slower pace than in the comparison period. On pricing, the average price per ad worldwide rose 14% from a year earlier in the third quarter of 2026. The website said "the average price per ad increased 14% worldwide year on year," supporting advertising revenue growth. The improvement in pricing coincided with increased ad impressions during a quarter in which the company posted growth in total sales despite a slowdown in the rate of impressions growth.
In the market, Meta shares fell more than 3% in premarket trading on October 22, 2026, according to an Investing.com update published the day after the earnings announcement. The shares declined despite quarterly revenue beating analysts' expectations and the company providing a higher sales range for the following quarter. On expected spending in 2026, Meta narrowed its annual capital expenditure forecast to $135 billion to $145 billion, according to the website. The previous range was $130 billion to $145 billion for the same year. The revision raised the lower end of expected spending while leaving the upper end unchanged. Under the updated guidance, the company is targeting annual capital spending starting at a higher level than previously expected, alongside its forecast for fourth-quarter sales growth.