Meta reports $64.6B in Q3 revenue; announces non-voting Class C shares

Meta (META) reported Q3 2026 earnings on Wednesday, October 21, for the quarter that ended on September 30, 2026. The company reported $64.60B in Q3 revenue, up 26% YoY. It also announced plans for a new, non-voting Class C stock (1, 2).

Headline Numbers

• Revenue: $64.60B, up 26% YoY from $51.24B, beat expectations by $1.23B.
• Diluted EPS: $3.83, up 265% YoY from $1.05. Excluding the $9.89B legal charge below, EPS would have been $7.40.
• Net income: $9.86B, up 264% YoY.
• Operating income: Declined by 37% to $12.99B, with operating margin falling from 40% to 20% due to the legal charge. Meta says operating income would have been about $22.88B without the charge.
• Total costs and expenses: $51.61B, including the legal charge.
• Free cash flow: -$2.12B, while it was +$10.63B a year earlier.

Legal Charge

• The company reported a $9.89B legal charge for the quarter, related to a larger agreement with U.S. state attorneys general to settle a lawsuit alleging that its platforms were designed to be addictive to children (1, 3).
• In August, Meta agreed to pay up to $17.1B total to settle the case (3).

Additional Metrics

• Meta says advertising revenue increased 26% to $63.06B, due to increases in ad impressions and the average price per ad (1).
• Daily active users came in at an average of 3.64B in September, up 3% YoY.
• Reality Labs reported a $4.13B operating loss, narrowed from $4.43B a year earlier. Meta expects these losses will narrow further in 2027.

Stock News

• Meta plans a new, non-voting Class C stock, effective January 19, 2027 (1).
• Current Class A and B shareholders will receive one Class C share for each share they hold; the effect will be a 2-for-1 stock split with no change in shareholder voting power. A distribution date has not yet been shared.
• The company did not repurchase any shares during the first 9 months of 2026, compared with $26.25B during that same period in 2025.

Guidance

• Meta expects Q4 revenue of $73–$76B (1).
• Full-year guidance for expenses was raised to $175–$179B due to the legal charge. Excluding the charge, Meta still expects operating income to be higher YoY and is also anticipating strong revenue growth for 2027.
• The company said that its AI investments are "delivering substantial incremental advertising revenue," going on to note that larger infrastructure investments will take longer to generate returns.
• Meta did not provide a revenue outlook for FY2027.

New Legal Charge

• Also on Wednesday, AP reported that a New Mexico judge ordered Meta to pay $25B after a jury found the company liable for misleading Facebook users about data privacy, a case that stems from the Cambridge Analytica scandal (4).
• The penalty is the largest ever leveled against the company.
• Meta said that it planned to appeal.

Sources & Further Reading

1. "Meta Reports Third Quarter 2026 Results." Meta. October 21, 2026.
2. "Meta Platforms, Inc. (META)." StockAnalysis.com. October 22, 2026.
3. "Attorney General James Secures Up to $17.1 Billion and Groundbreaking Reforms from Meta to Protect Children on Social Media." Office of the New York Attorney General. August 26, 2026.
4. "Meta ordered to pay New Mexico $25 billion for deceiving users about privacy on Facebook." AP. October 21, 2026.