Meta Platforms, Inc. (META) Earnings

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Dec 2026upcoming

Next quarter

Expected to report Jan 27, 2027 — estimated from last year’s reporting date.

Consensus is $8.16 EPS for Dec 2026 across 11 estimates, ranging $7.85 to $8.55.

META Sep 2026

Reported Oct 21, 2026 · after the close

: 13.50%
: -6.98%

: $6.52
: $7.40
: —
: $64.60B

Reported results

: $64.60B; from $51.24B
: 79.31%; from 82.03%
: $12.99B; from $20.54B
: 20.10%; from 40.07%
: $9.86B; from $2.71B
: $3.83; from $1.05

Highlights

Advertising-led growth: Q3 revenue rose 26% year over year to $64.60B, with ad impressions up 10% and average price per ad up 14%; Family daily active people reached 3.64B, up 3%.
EPS and the legal-charge adjustment: EPS was $7.40 excluding the $9.89B teen-litigation charge, 13.5% above the $6.52 consensus. GAAP diluted EPS was $3.83.
Litigation dominated reported costs: The $9.89B charge drove costs and expenses up 68% to $51.61B and operating income down 37% year over year to $12.99B. Separately, an October 21 New Mexico court order imposed a $25B civil penalty, which Meta intends to appeal.
Underlying operating result: Excluding the settlement charge, operating income would have been $22.88B, above both Q3 2025’s $20.54B and Q2 2026’s $18.77B; GAAP operating margin was 20%, versus 40% a year earlier.
AI infrastructure spending accelerated: Q3 capex, including finance-lease principal payments, was $34.91B; free cash flow was negative $2.12B despite $32.79B of operating cash flow. Full-year capex guidance is $135–145B.
Fourth-quarter outlook: Meta forecast Q4 revenue of $73–76B, assuming a 1% foreign-exchange headwind to year-over-year growth, and raised full-year expense guidance to $175–179B, including the legal charge.
Reality Labs losses remain substantial: The segment lost $4.13B in Q3 on $443M of revenue. Meta expects 2026 losses of $18–19B and around $15B next year.
New non-voting share class: Meta plans to issue one Class C share for each outstanding Class A and B share, effective January 2027, creating a two-for-one stock-split effect without changing voting power.

Analysis

Meta’s Q3 combined a strong advertising business with a large litigation charge and sharply higher AI-related investment. Revenue was $64.60B, up 26% year over year and about 6% from Q2, driven by 10% more ad impressions and a 14% increase in average ad price. Family DAP grew 3% to 3.64B. EPS of $7.40 excluding the $9.89B teen-litigation charge beat the $6.52 consensus by 13.5%; GAAP diluted EPS was $3.83. The year-over-year GAAP earnings comparison is distorted: Q3 2025 EPS was $1.05, after an $18.95B tax provision and an 87% effective tax rate.

The charge pushed costs up 68% to $51.61B and reduced GAAP operating income 37% to $12.99B, versus $20.54B a year earlier and $18.77B in Q2. Excluding the charge, operating income would have been $22.88B. At the same time, investment demands intensified: Q3 capex reached $34.91B and free cash flow turned negative $2.12B. Management forecast Q4 revenue of $73–76B and full-year capex of $135–145B, while pointing to AI’s contribution to ad performance and introducing Muse and Muse Wonder. A separate New Mexico court order imposing a $25B penalty adds another significant legal development; Meta intends to appeal.

Advertising and engagement

Ad revenue: Advertising revenue was $63.06B, up 26% year over year. The increase reflected 10% growth in impressions and 14% higher average pricing; Meta attributed pricing strength mainly to advertiser demand and improvements in ad targeting and measurement.
Audience and monetization: Family DAP averaged 3.64B in September, up 3% year over year, while worldwide average revenue per person rose 23% to $17.72. Meta said AI-driven recommendations and engagement are already supporting incremental ad revenue.
Other businesses: Family of Apps other revenue rose 59% to $1.10B, primarily from WhatsApp paid messaging and subscriptions. Reality Labs revenue declined 6% to $443M as lower Quest sales more than offset higher AI-glasses sales.

Youth litigation exposure

Multistate settlement: Meta recorded a $9.89B Q3 charge for its August agreement with 52 attorneys general over teen mental health and social-media claims. The agreement provides for payments of up to approximately $18.59B; about $12.7B is payable over 10 years, while roughly $5.3B is contingent on conditions involving peers and was not accrued at September 30.
New Mexico order: On October 21, the court imposed a $25B civil penalty after finding more than 43 million violations of the state’s Unfair Practices Act, with 15% post-judgment interest; it reserved a decision on injunctive relief. Meta has accrued an amount for the matter and intends to appeal. This is separate from the multistate agreement, which excludes New Mexico.
Broader exposure: Meta said youth-related trials are scheduled in the coming months and noted continuing scrutiny in several markets. Its full-year expense outlook now includes the Q3 charge, but the company warned active legal and regulatory matters could significantly affect results.

AI investment and cash

Infrastructure build-out: Q3 capex, including principal payments on finance leases, was $34.91B. Property and equipment purchases were $33.94B, compared with $18.83B a year earlier, as Meta expanded data centers, servers, and network infrastructure.
Cash generation: Operating cash flow was $32.79B, but free cash flow was negative $2.12B after capex and lease principal payments, versus positive $10.63B in Q3 2025. Cash, cash equivalents, and marketable securities totaled $82.45B at quarter-end.
Scale and financing: Meta raised full-year 2026 capex guidance to $135–145B and said it expects to keep investing aggressively in AI and its core business in 2027. The 10-Q disclosed $454.52B of non-cancelable contractual commitments, mostly tied to cloud capacity, infrastructure, energy, and Reality Labs hardware.

Guidance and Reality Labs

Revenue outlook: Q4 revenue guidance is $73–76B; the assumption is a 1% foreign-exchange headwind to year-over-year growth. Meta said AI improvements to engagement, recommendations, and ad monetization support expectations for strong overall revenue growth through 2027, without providing a full-year 2027 forecast.
Expenses and operating income: Full-year 2026 total expenses are expected at $175–179B, including the Q3 legal charge. Excluding that charge, Meta continues to expect 2026 operating income above 2025.
Reality Labs: The segment’s Q3 operating loss narrowed to $4.13B from $4.43B a year earlier, while revenue fell to $443M from $470M. Meta expects 2026 losses of $18–19B and around $15B in 2027 as it reallocates investment, primarily toward AI.

Class C share plan

Meta’s board approved a publicly listed, non-voting Class C common stock, with an effective date of January 19, 2027. The company intends to distribute one Class C share for each outstanding Class A and Class B share; the dividend is expected to have the effect of a two-for-one stock split, without changing shareholder voting power. Meta said the new class would provide flexibility for capital raising, employee compensation, acquisitions, and other corporate purposes as investment needs grow. The filing says Meta expects to use Class C shares for future equity offerings, which could dilute shareholders; the market price of Class C could also differ from Class A.

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