Meta Reports Q3 2026 Revenue of $64.6 Billion, Announces New Class C Stock

Third Quarter Financial Results

Meta Platforms reported revenue of $64.601 billion for the quarter ended September 30, 2026, a 26 percent increase from $51.242 billion a year earlier. Total costs and expenses rose 68 percent to $51.613 billion, driven by a $9.89 billion charge related to an agreement with 52 U.S. state attorneys general to resolve litigation over teen mental health and social media. Income from operations fell 37 percent to $12.988 billion, while net income jumped 264 percent to $9.86 billion, partly due to a lower effective tax rate of 24 percent compared with 87 percent in the prior year. Diluted earnings per share were $3.83 versus $1.05.

Litigation Settlement Impact

The August 2026 agreement provides for payments of up to approximately $18.59 billion. The third quarter charge of $9.89 billion reduced operating income and increased the effective tax rate. Excluding the charge, operating income would have been $22.88 billion, diluted EPS $7.40, and the effective tax rate 17 percent.

Operational Highlights

Family daily active people averaged 3.64 billion in September 2026, up 3 percent year over year. Ad impressions grew 10 percent and average price per ad rose 14 percent. Capital expenditures reached $34.91 billion. Cash, cash equivalents, and marketable securities totaled $82.45 billion. Free cash flow was negative $2.12 billion. Headcount decreased 15 percent to 66,775.

Outlook and New Class C Stock

For the fourth quarter, Meta expects revenue between $73 billion and $76 billion, with a 1 percent foreign currency headwind. Full year 2026 expenses are projected at $175 billion to $179 billion, including the litigation charge. Reality Labs losses are forecast at $18 billion to $19 billion for 2026, narrowing to around $15 billion in 2027. Capital expenditures for 2026 are estimated at $135 billion to $145 billion. The board approved a new publicly listed, non-voting Class C common stock effective January 19, 2027, with a one-time stock dividend of one Class C share for each outstanding Class A and Class B share. The move aims to fund AI investments, acquisitions, and employee compensation while preserving founder Mark Zuckerberg's voting control.

Sources: PR Newswire · The Verge · The Verge · Techmeme