Meta Reports $64.6 Billion in Q3 Revenue, Beating Expectations Despite Major Legal Charge

Meta Platforms delivered a strong third-quarter performance, reporting $64.6 billion in revenue for the period ended September 30, 2026.

The company posted a 26 percent increase from the same quarter last year, well ahead of analyst expectations of about $63.4 billion.

The results were driven almost entirely by advertising, which generated $63.1 billion, also up 26 percent year over year. Ad impressions rose 10 percent while the average price per ad increased 14 percent, reflecting continued strength in demand across Facebook, Instagram, and the broader family of apps.

The company posted diluted earnings per share of $3.83, compared with $1.05 a year earlier. Net income climbed 264 percent to $9.86 billion.

Those bottom-line figures were significantly affected by a $9.89 billion legal charge related to Meta's August agreement with 52 U.S. state attorneys general resolving litigation over teen mental health and social media.

Without the charge, Meta said operating income would have reached about $22.9 billion and diluted EPS would have been approximately $7.40. As reported, operating income fell 37 percent to $13.0 billion and the operating margin dropped to 20 percent from 40 percent a year ago.

Daily active people across Meta's apps averaged 3.64 billion in September, a 3 percent year-over-year increase. CEO Mark Zuckerberg highlighted progress on artificial intelligence, noting the launch of Muse and Muse Wonder, the company's first frontier models, as part of efforts toward "personal superintelligence."

Unveiled on September 8, 2026, Muse represents a shift in Meta's AI strategy towards systems capable of taking action, managing responsibilities, and helping users achieve their goals with less manual effort.

Unlike conventional chatbots that primarily generate responses to prompts, Muse is designed to interact with applications, navigate websites and execute tasks with varying degrees of autonomy.

The launch forms part of CEO Mark Zuckerberg's broader ambition to develop what the company describes as personal superintelligence, in which AI becomes an active assistant that helps individuals manage their personal and professional lives

Nearly 10 million advertisers used generative AI creative tools during the quarter. Looking ahead, Meta guided fourth-quarter revenue between $73 billion and $76 billion, with the midpoint above consensus estimates.

Full-year 2026 expenses are now expected in the range of $175 billion to $179 billion, incorporating the legal charge. Capital expenditures for the year were narrowed to $135 billion to $145 billion. The company also announced plans to create a new class of non-voting Class C common stock.

Shares of Meta rose roughly 4 to 5 percent in after-hours trading following the release, as investors focused on the robust advertising growth and optimistic outlook rather than the one-time legal expense.

Outlook

Meta's fourth-quarter guidance points to continued revenue growth, supported by resilient advertising demand and the expanding role of artificial intelligence across its platforms.

The company's projected revenue of $73 billion to $76 billion suggests that it expects momentum to continue into the final quarter of 2026, with the midpoint exceeding analysts' expectations.

Artificial intelligence is likely to remain central to Meta's growth strategy. The adoption of its generative AI advertising tools by nearly 10 million advertisers demonstrates how the technology is becoming integrated into its core business.

However, the outlook also highlights the growing cost of Meta's AI ambitions. With projected full-year expenses of $175 billion to $179 billion and capital expenditures of $135 billion to $145 billion, the company is committing substantial resources to infrastructure, computing capacity and AI development.

Investors will therefore be watching whether these investments translate into sustained revenue growth and improved profitability over time.