Meta revenue rose sharply in the third quarter as advertising demand strengthened, but heavy investment and a legal charge pressured profitability and cash flow. The company released results on October 21, 2026, for the quarter ended September 30.
Meta revenue growth outpaces ad volume
Advertising revenue reached $63.06 billion, up from $50.08 billion a year earlier. Ad impressions increased 10%, while the average price per ad rose 14%. Meta’s family daily active people averaged 3.64 billion in September, a 3% year-over-year increase.
Total costs and expenses climbed 68% to $51.61 billion, including the charge tied to Meta’s agreement with 52 U.S. attorneys general. GAAP operating margin fell to 20% from 40%. Excluding the legal charge, operating income would have been $22.88 billion and diluted earnings per share would have been $7.40 instead of $3.83.
The results extend the technology spending theme seen in IBM’s software-led quarter, Supermicro’s higher AI revenue estimate and Forrester’s AI-agent forecast.
Capital spending and fourth-quarter outlook
Meta narrowed its 2026 capital expenditure outlook to $135 billion to $145 billion from a previous range of $130 billion to $145 billion. It expects fourth-quarter revenue between $73 billion and $76 billion, with foreign exchange creating an estimated 1% headwind to year-over-year growth.
Reality Labs produced $443 million in quarterly revenue. Meta now expects the unit’s full-year operating losses to range from $18 billion to $19 billion. Chief Executive Mark Zuckerberg highlighted the launch of Muse and Muse Wonder as the company’s first frontier models. Figures come from Meta’s October 21 earnings release.
Elsy kanana
Elsy Kanana is a financial and cryptocurrency journalist at FusionMarketNews, covering digital assets, blockchain technology, financial markets, and emerging fintech trends. Her reporting focuses on market movements, regulatory developments, and on-chain analytics, delivering clear, data-driven insights to readers worldwide.
