Meta (META) Q3 2026 Earnings
Includes 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. Excluding this charge, diluted EPS would have been $7.40.
How Did META Stock React to Q3 2026 Earnings?
Did META Beat Earnings? Q3 2026 Results
No. Meta reported Q3 2026 earnings of $3.83 a share on Oct 21, 2026, missing the $5.70 consensus estimate by 32.8%. Revenue was $64.6B against a $63.4B estimate.
Meta Platforms delivered a jarring headline miss in its <a href="https://247wallst.com/investing/2026/10/21/live-will-meta-crush-q3-earnings-tonight-after-the-bell/">third-quarter earnings report</a>, as GAAP diluted EPS of $3.83 fell 32.79% short of the $5.70 consensus estimate, weighed down by a $9.89 billion charge tied to an August 2026 settlement with 52 U.S. state attorneys general over teen mental health and social media litigation. That single charge drove total costs and expenses up 68% year-over-year to $51.61 billion, compressing operating margin to 20% from 40% a year ago. Beneath the legal turbulence, the core business showed genuine strength: revenue climbed 26.1% year-over-year to $64.60 billion, edging past the $63.39 billion consensus by 1.91%, as a 14% rise in average ad pricing and a 10% gain in impressions powered advertising revenue to $63.06 billion. Family daily active people reached 3.64 billion. Looking ahead, Meta guided Q4 2026 revenue to $73.00 billion to $76.00 billion, while raising full-year expense guidance to $175.00 billion to $179.00 billion to absorb the litigation charge, with capital expenditures expected between $135.00 billion and $145.00 billion as AI infrastructure investment accelerates.
- Ad impressions increased 10% year-over-year
- Average price per ad increased 14% year-over-year
- Family daily active people grew 3% year-over-year to 3.64 billion
- AI investments delivering substantial incremental advertising revenue through stronger engagement, better recommendations, and more efficient monetization
- Revenue grew 26% year-over-year on both reported and constant currency basis
“We hit major milestones this quarter toward delivering personal superintelligence for everyone - including launching Muse and Muse Wonder, our first frontier model.”
Meta CEO, on the earnings call
What Is Meta's Outlook?
Q4 2026 revenue guidance of $73-76 billion, with foreign currency expected to be an approximately 1% headwind. Full-year 2026 total expenses now expected at $175-179 billion (raised to incorporate the $9.9 billion litigation charge). Excluding the legal charge, 2026 operating income expected to exceed 2025. Reality Labs losses expected to decline to $18-19 billion in 2026 and narrow further to approximately $15 billion in 2027. 2026 capital expenditures expected at $135-145 billion (narrowed from $130-145 billion). Q4 2026 tax rate expected at 15-17%. The company expects to continue investing aggressively beyond 2026 in core business and AI initiatives, and anticipates sustaining strong overall revenue growth throughout 2027. Additional youth-related litigation trials are scheduled in coming months.
META YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $64.6B | $51.2B | +26.1% |
| Gross Profit | $51.2B | $42.0B | +21.9% |
| Operating Income | $13.0B | $20.5B | −36.8% |
| Net Income | $9.9B | $2.7B | +264.0% |
META Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.