Meta forecasts fourth-quarter 2026 revenue of $73 billion to $76 billion
Key Facts
Meta forecast revenue of $73 billion to $76 billion for the fourth quarter of 2026, according to its earnings release issued on October 21, providing a range whose midpoint exceeds analysts' estimates. Those estimates stood at $73.65 billion, according to the Associated Press, within the company's projected range for the coming period. Meta's forecast thus allows for revenue below analysts' estimate at the low end and above it at the high end, with the midpoint remaining above the estimate. The forecast followed revenue of $64.60 billion in the third quarter, up 26% year on year, according to the news agency. Revenue in the corresponding period of 2025 was $51.24 billion, leaving Meta entering the final quarter with revenue above its year-earlier level.
In details of the business activity accompanying revenue growth, Meta reported a 10% year-on-year increase in ad impressions across its apps during the third quarter of 2026. The average price per ad rose 14% from the same period a year earlier, according to the company's statement filed with the U.S. Securities and Exchange Commission. Advertising activity thus combined higher ad volumes with higher average prices, alongside quarterly revenue growth. On app usage, the average number of daily active people across Meta's apps reached 3.64 billion in September 2026, according to the same statement. That average places the scale of daily usage alongside ad impressions and pricing as background to the results underpinning the company's forecast for the final quarter.
On costs, Meta raised its 2026 annual expense forecast to a range it described in its statement as "$175–179 billion" to account for a litigation charge. Third-quarter expenses included a $9.89 billion charge related to the settlement of teen mental health lawsuits, adding a legal cost to the period in which revenue grew. The company also set its annual capital expenditure forecast at $135–145 billion, another component of its financial plan for the year. The announced capital expenditure range includes principal payments on finance lease obligations, according to the definition Meta provided in its earnings release. Third-quarter free cash flow was negative $2.12 billion, leaving revenue growth accompanied by free cash flow below zero during the same period.
In the market, Meta shares rose 2.9% in after-hours trading following the release of its October 21, 2026 results, according to the Associated Press. For next year, the company expects Reality Labs losses to narrow to about $15 billion in 2027, according to its official statement. That outlook is linked to shifting investment toward priorities led by artificial intelligence technologies, as part of the company's announced reallocation of resources. On its share structure, Meta intends to implement an amendment to its certificate of incorporation allowing the creation of non-voting Class C shares. The company set January 19, 2027 as the target effective date for the amendment, making it the next scheduled step among the changes announced with the results.