Meta Platforms reported a 26% year-on-year increase in revenue to $64.60 billion for the third quarter of 2026, driven by strong advertising performance and growing contributions from its artificial intelligence (AI) investments.
The company reported revenue of $51.24 billion in the same quarter last year. Its third-quarter revenue also exceeded analysts’ expectations of $63.37 billion. Meta’s shares rose around 2.5% in extended trading following the results.
Meta Third Quarter 2026 Financial Highlights
| In millions, except percentages and per share amounts | 2026 | 2025 | % Change |
| Revenue | $ 64,601 | $51,242 | 26 % |
| Costs and expenses | 51,613 | 30,707 | 68 % |
| Income from operations | $ 12,988 | $20,535 | (37) % |
| Operating margin | 20 % | 40 % | |
| Provision for income taxes | $ 3,141 | $ 18,954 | (83) % |
| Effective tax rate | 24 % | 87 % | |
| Net income | $ 9,860 | $2,709 | 264 % |
| Diluted earnings per share (EPS) | $ 3.83 | $ 1.05 | 265 % |
Meta Reports Higher Revenue and Profit
Meta reported net income of $9.86 billion for the quarter ended September 30, 2026, compared with $2.71 billion a year earlier. Diluted earnings per share (EPS) increased to $3.83 from $1.05 in the year-ago quarter.
However, the company’s operating income declined 37% to $12.99 billion from $20.54 billion a year earlier. Total costs and expenses increased 68% to $51.61 billion, mainly due in part to a $9.89 billion charge related to legal proceedings involving teen mental health and social media.
Excluding this legal charge, Meta’s diluted EPS would have been $7.40, while operating income would have reached $22.88 billion.
Advertising Business Continues to Grow
Meta’s advertising business remained a major contributor to its revenue growth. The number of ad impressions across its family of apps increased 10% year-on-year, while the average price per advertisement rose 14%.
The company’s family of apps, which includes Facebook, Instagram and WhatsApp, had an average of 3.64 billion daily active people in September 2026, up 3% from a year earlier.
Meta also continued investing in AI products and models. CEO Mark Zuckerberg said the company had reached important milestones toward its goal of delivering personal superintelligence, including the launch of Muse and Muse Wonder.
The company expects its AI investments to improve advertising performance, user engagement and recommendations while creating new business opportunities.
Meta Issues Strong Fourth-Quarter Revenue Guidance
Meta expects fourth-quarter 2026 revenue to range between $73 billion and $76 billion. The midpoint of this forecast is $74.5 billion, above analysts’ expectations of $73.73 billion.
The company now expects full-year 2026 expenses to reach between $175 billion and $179 billion, including the legal charge recorded in the third quarter. Meta also expects capital expenditures, including principal payments on finance leases, to range between $135 billion and $145 billion for the year.
The company said it expects full-year 2026 operating income to exceed 2025 levels when the third-quarter legal charge is excluded.
Meta also expects losses at its Reality Labs division to decline to between $18 billion and $19 billion in 2026. Looking ahead to 2027, it expects Reality Labs losses to narrow further to around $15 billion as it shifts investment toward other priorities, particularly AI.
Meta Approves New Class of Shares
Separately, Meta’s board approved a new class of publicly listed, non-voting Class C common stock, expected to take effect in January 2027.
The company plans to issue one Class C share for each existing Class A and Class B share, subject to the required corporate steps. The move is expected to have the effect of a two-for-one stock split in the market price of existing Class A shares, without changing shareholders’ voting power.
Meta said the new share class will provide additional flexibility for raising capital, employee compensation, acquisitions and other corporate purposes while allowing Mark Zuckerberg to continue leading the company.
Overall, Meta’s latest results show strong revenue growth and rising advertising demand, while higher costs and legal expenses remain important factors for investors to watch.
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