Meta reports $64.6B Q3 revenue, up 26%, and keeps 2026 AI capex at up to $145B

What Meta reported

Meta reported third quarter 2026 results on 21 October 2026. Revenue for the quarter ended 30 September was $64.60 billion, up 26% year over year on both a reported and constant currency basis. Costs and expenses rose 68% to $51.61 billion, which included a $9.89 billion charge for its agreement with 52 attorneys general over teen mental health litigation. Income from operations fell 37% to $12.99 billion, and the operating margin was 20%, down from 40%.

Net income was $9.86 billion, or $3.83 per diluted share, up from $2.71 billion a year earlier, when an 87% effective tax rate weighed on profit. Excluding the legal charge, Meta says operating income would have been $22.88 billion and diluted EPS $7.40. Ad impressions rose 10% and the average price per ad rose 14%. Family daily active people averaged 3.64 billion in September.

The AI spending picture

Capital expenditures, including principal payments on finance leases, were $34.91 billion in the quarter. Cash flow from operations was $32.79 billion, so free cash flow was negative $2.12 billion. Meta narrowed its full-year 2026 capex range to $135 billion to $145 billion, from $130 billion to $145 billion, and raised its total expense outlook to $175 billion to $179 billion to absorb the legal charge.

"We hit major milestones this quarter toward delivering personal superintelligence for everyone - including launching Muse and Muse Wonder, our first frontier model," said Mark Zuckerberg, founder and CEO. Meta says its AI investments already deliver substantial incremental ad revenue, while its MSL investments will take longer to pay back. For 2027 it expects to keep investing aggressively in the core business and emerging AI work, and to cut Reality Labs losses to around $15 billion as money shifts toward AI.

Class C stock

The board approved a new publicly listed, non-voting Class C common stock, effective in January 2027. Each Class A and Class B share will receive one Class C share as a one-time stock dividend, which Meta says should work like a two-for-one split in the Class A price. A special committee said the new class gives Meta a way to raise capital, fund employee compensation and pay for potential acquisitions as AI investment grows while keeping the founder-led model.

What to watch next

Meta guided fourth quarter revenue to $73 billion to $76 billion and gave no full-year 2027 revenue outlook, though it expects strong revenue growth to continue through 2027. It also flagged youth-related trials scheduled in the coming months in the US. The supplier side of this spending shows up in results such as Broadcom's AI chip revenue. Meta plans to file a Form 8-K and an information statement on the Class C stock with the SEC. Other earnings are collected under AI Business & Funding.

Questions people ask

How much revenue did Meta make in Q3 2026?

$64.60 billion for the quarter ended 30 September 2026, up 26% year over year.

How much is Meta spending on AI infrastructure?

It spent $34.91 billion on capital expenditures in the quarter and expects $135 billion to $145 billion for 2026, including principal payments on finance leases.

Why did Meta's operating income fall?

A $9.89 billion charge for its agreement with 52 state attorneys general. Without it, Meta says operating income would have been $22.88 billion.

Sources

1. Meta Reports Third Quarter 2026 Results (Meta Platforms Investor Relations, 21 Oct 2026)