Meta ad revenue jumps 26% to $63.061 billion as Google Search grows 12%
Key Facts
Meta’s advertising revenue rose 26% to $63.061 billion in the third quarter of 2026, compared with $50.082 billion in the same period last year, according to a company filing with the U.S. Securities and Exchange Commission. At Alphabet, Google Search and other advertising revenue increased 12% to $63.3 billion, according to the Associated Press. The figures put Meta’s ad business growth ahead of Google’s Search and other advertising growth during the quarter, with their quarterly revenues close to each other. The comparison does not mean the businesses are identical: Alphabet’s figure includes Search and other advertising, while Meta’s covers advertising revenue across its apps. The results came as both companies said artificial intelligence investments were supporting different parts of their businesses.
Meta attributed ad price growth to stronger demand and improved targeting and measurement tools. Ad impressions across its apps rose 10% year over year, while the average ad price increased 14% in the third quarter, according to the filing. The difference between the growth rates indicates that both more impressions and higher prices contributed to revenue expansion, though the filing did not specify each factor’s separate share. The company said its targeting and measurement tools improved ad performance, and also linked the rise in average prices to increased advertising demand. It also reported that an AI-powered discovery engine, which recommends relevant content to users, had already improved engagement and monetization across its products; the company did not attribute a specific share of ad revenue growth to AI.
At Alphabet, total revenue reached $127.58 billion in the third quarter, up 25% from the year-earlier period, but below the average analyst estimate of $127.97 billion, according to AP. YouTube advertising grew more slowly than Search: its ad revenue rose 9% to $11.2 billion during the quarter. AP noted that Google’s results fell short of some analyst expectations, amid broader comparisons of Search ad growth with Meta’s advertising. On Search demand, Alphabet said the year-over-year growth rate in Search queries reached its highest level in the past five years. The company attributed growth in queries, including commercial queries, to its AI investments, presenting them as a driver of Search activity.
As for the market reaction, AP reported that Alphabet shares fell more than 10% to $289.95 in after-hours trading on Wednesday, October 28, 2026, following the results. The decline came after the company reported quarterly revenue growth, although its total revenue did not reach the average analyst estimate. The move refers to Alphabet shares in after-hours trading; it does not by itself establish a single cause for the decline. The market response places the company’s results alongside revenue indicators for Search and YouTube, while those indicators remain parts of its overall business.
On costs, Meta’s expenses rose 68% to $51.61 billion in the third quarter, including a $9.89 billion legal settlement charge, according to AP. The company said diluted earnings per share would have been $7.40 excluding the charge. These figures highlight rising expenses alongside ad growth and the settlement’s effect on reported earnings. Meta also provided usage figures for its Muse product: Mark Zuckerberg said more than 10 million people in the United States and Canada had created accounts for it as of October 21, 2026. He added that about 25% of those who had created an account used it on a given day, presenting this as an indicator of daily product use.
For the fourth quarter of 2026, Meta forecast revenue of between $73 billion and $76 billion, a range whose midpoint is above analysts’ estimate of $73.65 billion, according to AP. At the same time, the company narrowed its 2026 capital expenditure forecast to $135–145 billion, compared with a previous estimate of $130–145 billion. It said it would continue investing heavily in its core business and in AI. The next-quarter revenue outlook sits alongside a high capital spending plan, as third-quarter results showed both ad growth and rising expenses.