Meta Reports Third Quarter 2026 Results
Meta Platforms, Inc. (META) filed an SEC Form 8-K — Results of Operations and Financial Condition. Meta Reports Third Quarter 2026 Results Announces Establishment of New Class C Common Stock MENLO PARK, Calif. – October 21, 2026 – Meta Platforms, Inc. (Nasdaq: META) today reported financial results for the quarter ended September 30, 2026. "We hit major milestones this quarter
How this was made
The 30-second read
Why it matters
The mixed financial results and forward guidance create a nuanced outlook, balancing strong top-line growth against higher costs and legal liabilities.
Market read
Investors will weigh the revenue beat against the expense increase and legal charge, influencing short-term price action and longer-term valuation.
What to watch
Potential upside from new Class C stock issuance and AI-driven ad revenue growth not fully priced in.
Meta Reports Third Quarter 2026 Results Announces Establishment of New Class C Common Stock
Revenue grew 26% year-over-year, advertising revenue grew 26%, and average price per ad increased 14%, but a $9.89 billion legal charge drove costs and expenses up 68%, reduced operating income 37%, and resulted in negative $2.12 billion of free cash flow amid $34.91 billion of capital expenditures including principal payments on finance leases.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 revenueGAAP | $64.60B | – | 26% |
| Q3 2026 revenue excluding foreign exchange effectnon-GAAP | $64.71B | – | 26% |
| Nine months 2026 revenueGAAP | $181.7B | – | 29% |
| Nine months 2026 revenue excluding foreign exchange effectnon-GAAP | $179.4B | – | 27% |
| Q3 2026 cost of revenueGAAP | $13.37B | – | – |
| Q3 2026 research and developmentGAAP | $20.05B | – | – |
| Q3 2026 marketing and salesGAAP | $3.33B | – | – |
| Q3 2026 general and administrativeGAAP | $14.86B | – | – |
| Q3 2026 total costs and expensesGAAP | $51.61B | – | 68% |
| Nine months 2026 total costs and expensesGAAP | $127.1B | – | – |
| Q3 2026 income from operationsGAAP | $12.99B | – | (37)% |
| Nine months 2026 income from operationsGAAP | $54.63B | – | – |
| Q3 2026 operating marginGAAP | 20% | – | – |
| Q3 2026 income before income taxesGAAP | $13.00B | – | – |
| Q3 2026 provision for income taxesGAAP | $3.14B | – | (83)% |
| Q3 2026 effective tax rateGAAP | 24% | – | – |
| Q3 2026 net incomeGAAP | $9.86B | – | 264% |
| Nine months 2026 net incomeGAAP | $52.48B | – | – |
| Q3 2026 basic earnings per shareGAAP | $3.86 | – | – |
| Q3 2026 diluted earnings per shareGAAP | $3.83 | – | 265% |
| Nine months 2026 diluted earnings per shareGAAP | $20.44 | – | – |
| Q3 2026 income from operations excluding the legal chargeother | $22.88B | – | – |
| Q3 2026 diluted EPS excluding the legal chargeother | $7.40 | – | – |
| Q3 2026 effective tax rate excluding the legal chargeother | 17% | – | – |
| Q3 2026 advertising revenueGAAP | $63.06B | – | 26% |
| Q3 2026 advertising revenue excluding foreign exchange effectnon-GAAP | $63.16B | – | 26% |
| Nine months 2026 advertising revenueGAAP | $177.4B | – | 29% |
| Nine months 2026 advertising revenue excluding foreign exchange effectnon-GAAP | $175.1B | – | 27% |
| Q3 2026 other revenueGAAP | $1.10B | – | – |
| Q3 2026 cash flow from operating activitiesGAAP | $32.79B | – | – |
| Q3 2026 free cash flownon-GAAP | −$2.12B | – | – |
| Nine months 2026 cash flow from operating activitiesGAAP | $96.87B | – | – |
| Nine months 2026 free cash flownon-GAAP | $11.05B | – | – |
| Family daily active peopleother | 3.64B | – | 3% |
| Ad impressionsother | 10% | – | 10% |
| Average price per adother | 14% | – | 14% |
| Headcountother | 66,775 | – | (15)% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Family of Apps Q3 2026Includes Facebook, Instagram, Messenger, WhatsApp, and other services. | $64.16B | – | – |
| Reality Labs Q3 2026Includes virtual and augmented reality related consumer hardware, software, and content. | $443M | – | – |
| Family of Apps nine months 2026Income from operations was $67,410 million, compared with $71,702 million. | $180.4B | – | – |
| Reality Labs nine months 2026Loss from operations was $(12,775) million, compared with $(13,171) million. | $1.28B | – | – |
Fourth quarter 2026 and full year 2026 outlook
- RevenueFourth quarter 2026 total revenue: $73-76 billion
- Operating expensesFull year 2026 total expenses: $175-179 billion
- Tax rateFourth quarter 2026 tax rate: 15-17%
- NoteForeign currency is an approximately 1% headwind to year-over-year total revenue growth for fourth quarter 2026.
- NoteExcluding the third quarter legal charge, 2026 operating income is expected to be above 2025 operating income.
- Note2026 Reality Labs losses are expected to decline compared to 2025 to a range of $18-19 billion.
- Note2026 capital expenditures, including principal payments on finance leases: $135-145 billion.
- NoteReality Labs losses are expected to narrow next year to around $15 billion.
- NoteMeta expects to sustain strong overall revenue growth throughout 2027, but is not providing a full-year 2027 revenue outlook.
Capital returns
- Dividend and dividend equivalent payments were $1.36 billion in Q3 2026.
- Payments for dividends and dividend equivalents were $(1,361) million in Q3 2026 and $(4,060) million in the nine months ended September 30, 2026.
- Repurchases of Class A common stock were — in Q3 2026 and — in the nine months ended September 30, 2026.
- The Board declared a one-time stock dividend of one share of Class C common stock for each outstanding share of Class A common stock and Class B common stock, contingent upon and to be paid after the effectiveness of the amended and restated certificate of incorporation.
What drove it
- Family daily active people was 3.64 billion on average for September 2026, an increase of 3% year-over-year.
- Ad impressions delivered across the Family of Apps increased 10% year-over-year.
- Average price per ad increased 14% year-over-year.
- Revenue increased 26% year-over-year on both a reported and constant currency basis.
- Meta stated that AI investments are delivering incremental advertising revenue through stronger engagement, better recommendations, and more efficient monetization.
Concerns
- Third quarter 2026 general and administrative expenses included a $9.89 billion charge related to the August 2026 agreement with U.S. State Attorneys General to resolve litigation related to teen mental health and social media.
- The agreement with 52 attorneys general provides for payments of up to approximately $18.59 billion.
- Costs and expenses increased 68% year-over-year and operating margin was 20%, compared with 40%.
- Free cash flow was negative $2.12 billion as capital expenditures including principal payments on finance leases were $34.91 billion.
- Meta continues to see scrutiny on youth-related issues in several markets and has youth-related trials scheduled in the coming months in the U.S.
What to watch
- Fourth quarter 2026 total revenue guidance of $73-76 billion and the approximately 1% foreign currency headwind assumption.
- Full year 2026 total expense guidance of $175-179 billion, which was raised to incorporate the $9.9 billion legal charge.
- 2026 capital expenditure guidance of $135-145 billion, narrowed from $130-145 billion.
- Reality Labs losses expected at $18-19 billion in 2026 and around $15 billion next year.
- Implementation of the Class C common stock structure, effective January 19, 2027, and the subsequent stock dividend timing to be determined by the Board.
Balance sheet and cash flow
- Cash, cash equivalents, and marketable securities were $82.45 billion as of September 30, 2026.
- Cash and cash equivalents were $11,222 million and marketable securities were $71,227 million as of September 30, 2026.
- Long-term debt was $80,922 million as of September 30, 2026, compared with $58,744 million as of December 31, 2025.
- Capital expenditures, including principal payments on finance leases, were $34.91 billion in Q3 2026.
- Purchases of property and equipment were $(33,942) million and principal payments on finance leases were $(964) million in Q3 2026.
- Net cash provided by operating activities was $32,786 million in Q3 2026 and $96,873 million in the nine months ended September 30, 2026.
- Free cash flow was $(2,120) million in Q3 2026 and $11,049 million in the nine months ended September 30, 2026.
- Proceeds from issuance of long-term debt, net, were $24,910 million in the nine months ended September 30, 2026.
Analysis
Meta reported Q3 2026 revenue of $64,601 million, up 26% year-over-year, with the same 26% growth on a constant-currency basis. Advertising revenue was $63,061 million and also grew 26%. Engagement and monetization indicators were positive: Family daily active people increased 3%, ad impressions rose 10%, and average price per ad increased 14%. Family of Apps generated $64,158 million of quarterly revenue, while Reality Labs generated $443 million.
The reported profit profile was heavily affected by the legal charge. Costs and expenses rose 68% to $51,613 million, including a $9.89 billion general and administrative charge related to the agreement with U.S. State Attorneys General. Income from operations declined 37% to $12,988 million and operating margin was 20%, compared with 40%. Meta stated that excluding the charge, income from operations would have been $22.88 billion, diluted EPS would have been $7.40, and the effective tax rate would have been 17%.
Net income was $9,860 million, up 264%, while diluted EPS was $3.83, up 265%. The large year-over-year increase in net income occurred alongside a provision for income taxes of $3,141 million compared with $18,954 million, and an effective tax rate of 24% compared with 87%. Reality Labs reported a Q3 operating loss of $(4,129) million, compared with $(4,432) million, while Family of Apps operating income was $17,117 million, compared with $24,967 million.
Investment intensity remained substantial. Q3 operating cash flow was $32,786 million, but purchases of property and equipment of $(33,942) million and principal payments on finance leases of $(964) million resulted in free cash flow of $(2,120) million. Meta held $11,222 million in cash and cash equivalents and $71,227 million in marketable securities at September 30, 2026, while long-term debt was $80,922 million. Dividend and dividend equivalent payments were $1.36 billion, with no Class A repurchases reported for the quarter.
For Q4, Meta guided total revenue to $73-76 billion and expects foreign currency to be an approximately 1% headwind to year-over-year revenue growth. Full-year expense guidance was raised to $175-179 billion to incorporate the legal charge, while 2026 capital expenditure guidance was narrowed to $135-145 billion. The company expects Reality Labs losses of $18-19 billion in 2026 and around $15 billion next year. Separately, the Board approved a publicly listed non-voting Class C common stock, effective January 19, 2027, and declared a contingent one-time Class C stock dividend.
Management, verbatim
We hit major milestones this quarter toward delivering personal superintelligence for everyone - including launching Muse and Muse Wonder, our first frontier model.
Mark Zuckerberg, Meta founder and CEO
Our investments are paying off, the core business is strong, and we're seeing velocity across the board.
Mark Zuckerberg, Meta founder and CEO
Not in the filing
stated, not guessed- Gross margin was not reported.
- Non-GAAP operating income, net income, and EPS were not reported as formal non-GAAP measures.
- Prior-quarter figures were not reported for the key financial and operational metrics.
- Previous-release outlook was not provided, so comparison of actual results against prior guidance is unavailable.
- Year-over-year percentage changes were not printed for individual cost categories, segment revenue, segment operating income or loss, cash flow, free cash flow, and balance-sheet items.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Meta's Q3 2026 filing includes a $9.9B litigation charge, new Class C stock creation, and updated capital expenditure guidance.
Ticker impact
Meta Platforms reported Q3 2026 results with revenue up 26% YoY to $64.6B and issued guidance for Q4 revenue $73-76B.
likely modest pressure as the market prices in higher expenses and the litigation charge.
Large-cap earnings with new guidance and a significant expense increase are material; traders may adjust positions based on the mixed outlook.
Market effects
AI and advertising sectors may see heightened scrutiny on expense growth, while competitors could benefit if Meta's margins compress.
U.S. tech indices could face slight downward pressure from the expense outlook.
Limited; impact primarily on U.S. large-cap tech exposure.
Counterpoint
Despite higher expenses, the revenue surge and AI initiatives could drive upside if the market overreacts to the charge.
Key entities
- companyMeta Platforms, Inc.
U.S.-listed social media and technology giant reporting Q3 2026 results.
