Meta Q3 revenue surges to $64.6bn as AI push prompts new stock class

Meta Platforms has reported a 26 per cent increase in third-quarter revenue to $64.60 billion, driven by robust growth in its advertising business, while announcing a new stock class to help fund its massive artificial intelligence investments.

The net income for the quarter ended September 30 surged 264 per cent to $9.86 billion, up from $2.71 billion in the same period last year. However, operating income dropped 37 per cent to $12.99 billion after the tech giant recorded a $9.89 billion legal charge tied to an agreement with 52 US state attorneys general resolving litigation over teen mental health and social media.

Meta stated that excluding this legal settlement, its operating income for the quarter would have reached $22.88 billion, with adjusted diluted earnings per share at $7.40 instead of the reported $3.83.

Key financial metrics for Q3

AI spending and new non-voting share class

Advertising remained the company's core economic engine, generating $63.06 billion during the quarter. Ad impressions across Meta's applications grew by 10 per cent, while the average price per advertisement rose 14 per cent year-on-year.

To power its expanding AI ecosystem, capital expenditure climbed to $34.9 billion during the third quarter, surpassing the $32.8 billion generated from operating activities. As a result, free cash flow turned negative at approximately $2.1 billion.

To ensure sustained funding for long-term investments without diluting control, Meta's board approved a new publicly traded, non-voting Class C common stock structure. The design allows the company to fund acquisitions, employee compensation, and capital buildouts while preserving Chief Executive Mark Zuckerberg's voting control.

What happens next

Meta is focusing its AI efforts on its Muse AI agent, which attracted more than 10 million users across the United States and Canada during its first six weeks. Chief Financial Officer commentary noted that AI investments are already driving incremental advertising revenue through better content recommendations and monetization efficiencies.

For the fourth quarter, Meta projected revenue between $73 billion and $76 billion. It revised its full-year 2026 expense guidance to $175–179 billion to account for the legal charge, while raising its full-year capital expenditure forecast to $135–145 billion.