Meta Revenue Jumps 26% to $64.60 Billion in Third Quarter
Key Facts
Meta reported revenue of $64.60 billion in the third quarter of 2026, up 26% year over year and above analysts’ expectations of $63.34 billion, according to data cited by The Associated Press. The company said ad impressions across its family of apps rose 10% from the same period last year, while the average price per ad increased 14%. Both factors contributed to advertising revenue growth, according to the company’s filing with the U.S. Securities and Exchange Commission. In September, the average number of daily active people across the company’s apps was 3.64 billion, up 3% year over year. The figures offer mixed signals about its core business engine: its audience is expanding more slowly than ad impressions and pricing are growing.
Meta’s net income for the quarter was $9.86 billion, with diluted earnings per share of $3.83, compared with net income of $2.709 billion and earnings per share of $1.05 in the third quarter of 2025. But the company recorded a $9.89 billion legal charge and said operating income would have been $22.88 billion instead of $12.99 billion without the charge. According to the same filing, diluted earnings per share would have been $7.40 without the charge. Meta linked the charge to an agreement announced in August 2026 with 52 state attorneys general, including payments of up to about $18.59 billion to settle claims related to teen health and social media. The quarter therefore sets revenue growth against a significant accounting impact on the company’s reported results.
Capital expenditures in the quarter were $34.91 billion, including finance lease principal payments, while free cash flow was negative $2.12 billion. Meta disclosed both figures, without the filing alone attributing the negative cash flow to any particular item. The company narrowed its 2026 capital expenditure forecast to $135–145 billion, from $130–145 billion. It also raised its forecast for full-year expenses to a range of $175–179 billion, including the $9.9 billion settlement charge. The guidance reflects continued high spending alongside the cost of the settlement during the year.
Meta forecast fourth-quarter 2026 revenue of $73 billion to $76 billion, assuming foreign exchange would be a roughly 1% headwind to annual revenue growth. Commenting on the quarter, Mark Zuckerberg said the company had “achieved key milestones toward delivering personal superintelligence for everyone,” pointing to the launch of Muse and Muse Wonder, which he described as the company’s first two frontier models. Meta said its AI investments are generating incremental advertising revenue by driving engagement, improving recommendations and increasing monetization efficiency. It added that it expects to continue investing heavily to support its core business and emerging AI initiatives. The company expects Reality Labs losses to narrow to about $15 billion in 2027 as it redirects investment, particularly toward AI.
Meta shares rose 0.5% in regular trading on October 21, then gained 2.9% in extended trading after the results were announced, according to The Associated Press. The stock closed at $642.62 on October 23, after closing at $705.44 on October 19, according to EL7 data. These levels show the stock’s movement in the days around the announcement, while the extended-hours response came immediately after the results were released. The fourth-quarter revenue forecast and high annual capital spending put the company’s next reported figures in focus for the coming quarter. The trajectory of AI investment and Reality Labs losses also remains part of its outlook for the following year.