Meta Reports Third-Quarter Revenue of $64.6 Billion Amid Strong Advertising Growth and Legal Charges

Meta Platforms reported its financial results for the third quarter ended September 30, 2026, posting a 26 per cent year-on-year increase in revenue to $64.60 billion, compared to $51.24 billion in the corresponding period of the previous year. Net income for the quarter surged 264 per cent to $9.86 billion, up from $2.71 billion a year ago. Diluted earnings per share climbed to $3.83 from $1.05.

The company’s core source of income, advertising revenue, grew 26 per cent during the quarter to reach $63.06 billion. However, the financial results were impacted by a major legal charge. Expenses for the period included a $9.89 billion charge related to an agreement with 52 US state attorneys general to resolve litigation concerning teen mental health and social media.

According to Meta, operating income would have reached $22.88 billion without the legal charge, and diluted earnings per share would have stood at $7.40 instead of the reported $3.83.

Looking ahead, Meta has issued its financial outlook for the fourth quarter, expecting revenue to be in the range of $73 billion to $76 billion. The company also raised its full-year 2026 expense outlook to $175-179 billion to incorporate the legal charge. Additionally, Meta increased its 2026 capital expenditure outlook to $135-145 billion, up from its earlier projection range of $130-145 billion, as it continues to direct funds toward artificial intelligence infrastructure and other business priorities.

In the chief financial officer's outlook commentary, Meta stated that its ongoing investments in artificial intelligence are already delivering incremental advertising revenue through enhanced engagement, improved recommendations, and more efficient monetization. The company noted that while investments in AI models and infrastructure will take longer to generate returns compared to its core business, the breadth of monetization opportunities and internal efficiencies provides confidence in their long-term potential.

Meta expects that the benefits of these AI investments, alongside continued advances in its models and upcoming product launches, will support strong overall revenue growth through 2027 as the company develops its budget and capacity plans for the upcoming year.

"Meta's latest financial results demonstrate the resilience of its core advertising business, which continues to fund aggressive capital allocation toward artificial intelligence infrastructure. While legal liabilities create short-term financial headwinds, the company's clear focus on scaling AI to drive user engagement and monetization highlights a disciplined long-term strategy. For founders and investors in the broader tech ecosystem, this emphasizes the importance of balancing core revenue streams with sustained investments in emerging technologies to secure future market leadership." — Dr. Shishir Gupta, Founder & CEO, StartupLanes