Why it matters
- Meta said Wednesday, Oct. 21, that third-quarter revenue rose 26% to $64.60 billion, while operating income fell 37% to $12.99 billion after a $9.89 billion charge tied to its settlement with 52 state attorneys general. Diluted EPS was $3.83, or $7.40 excluding the charge, by the company's math.
- Meta forecast fourth-quarter revenue of $73 billion to $76 billion and narrowed its 2026 capital spending forecast to $135 billion to $145 billion, from $130 billion to $145 billion.
- Meta's board approved a new non-voting Class C stock and a one-time dividend of one Class C share per Class A and Class B share, which Meta expects to work like a 2-for-1 split. Shares traded at about $733 at 4:53 p.m. ET, up about 5.1% from Wednesday's close, according to Yahoo Finance data.
Meta Platforms shares rose about 5% in after-hours trading Wednesday, Oct. 21, after the Facebook and Instagram owner reported third-quarter revenue of $64.60 billion, up 26% from a year earlier, and forecast fourth-quarter sales of $73 billion to $76 billion. The stock traded at about $733.00 at 4:53 p.m. ET, up from its regular-session close of $697.52, according to Yahoo Finance data.
Meta also said its board approved a new class of publicly listed, non-voting Class C common stock, to take effect Jan. 19, 2027, in its earnings release filed with the Securities and Exchange Commission after the 4 p.m. ET close.
How did Meta stock react to earnings?
It rose. Meta closed the regular session at $697.52, up 0.5% from Tuesday's close of $694.25, and climbed as high as about $748.80 in the 4:40 p.m. ET five-minute window before easing to about $733, Yahoo Finance data show. Meta's conference call began at 4:30 p.m. ET, and after-hours prices can change before Thursday's open.
Meta third-quarter 2026 results at a glance
| Measure | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Revenue | $64.60 billion | $51.24 billion | +26% |
| Advertising revenue | $63.06 billion | $50.08 billion | +26% |
| Operating income | $12.99 billion | $20.54 billion | -37% |
| Operating margin | 20% | 40% | -20 pts |
| Net income | $9.86 billion | $2.71 billion | +264% |
| Diluted EPS | $3.83 | $1.05 | +265% |
| Free cash flow | -$2.12 billion | $10.63 billion | n/a |
Source: Meta third-quarter 2026 earnings release (Exhibit 99.1 to Form 8-K).
Costs and expenses rose 68% to $51.61 billion. They included a $9.89 billion charge for the agreement Meta announced in August with 52 attorneys general to resolve litigation over teen mental health and social media, which provides for payments of up to about $18.59 billion. Excluding the charge, Meta said, operating income would have been $22.88 billion and diluted EPS $7.40. Net income and EPS rose from a year earlier largely because the 2025 quarter carried an 87% effective tax rate, versus 24% this year.
Ad impressions rose 10% and the average price per ad rose 14%. Family daily active people averaged 3.64 billion in September, up 3%. The Family of Apps segment earned $17.12 billion in operating income, and Reality Labs lost $4.13 billion, versus a $4.43 billion loss a year earlier. Headcount fell 15% to 66,775.
What is Meta's outlook for the fourth quarter and 2026?
Meta expects fourth-quarter revenue of $73 billion to $76 billion, with currencies a roughly 1% headwind. It raised its 2026 total expense forecast to $175 billion to $179 billion to include the legal charge, and said that, excluding the charge, it still expects 2026 operating income to top 2025's.
| Outlook item | Forecast |
|---|---|
| Q4 2026 revenue | $73 billion to $76 billion |
| 2026 total expenses | $175 billion to $179 billion |
| 2026 capital expenditures | $135 billion to $145 billion (was $130 billion to $145 billion) |
| 2026 Reality Labs losses | $18 billion to $19 billion |
| Q4 2026 tax rate | 15% to 17% |
Third-quarter capital expenditures, including finance lease principal payments, were $34.91 billion. Meta said it expects to keep investing aggressively in 2027 and that Reality Labs losses should narrow next year to around $15 billion. It did not give a 2027 revenue forecast.
What is Meta's new Class C stock?
It is a non-voting share class. Meta's board declared a one-time dividend of one Class C share for each Class A and Class B share, to be paid after the new charter takes effect; the record and payment dates will be set later. Meta said it expects the Class A price to then reflect a 2-for-1 split, and that the dividend will not change any shareholder's voting power. Meta said the stock gives it a way to raise capital, pay employees and fund deals, and a separate Founder Alignment Agreement limits Chief Executive Mark Zuckerberg's sales of Class C shares without a matching cut in his voting power, according to its 8-K filing.
For more on Meta's AI push, read about its Muse Wonder AI models. For Wednesday's other big after-close report, see Tesla's third-quarter results. Follow more earnings coverage in our companies section.
Sources
- Meta Platforms, Third-quarter 2026 earnings release (Exhibit 99.1 to Form 8-K, Oct. 21, 2026)
- Meta Platforms, Form 8-K, Oct. 21, 2026 (Class C stock, Founder Alignment Agreement)
- Yahoo Finance, chart data for Meta Platforms (META), after hours and daily closes
