Meta reported Q3 revenue of $64.60 billion, above analyst estimates, and guided Q4 revenue above expectations. The company also narrowed its 2026 capex range and created a new nonvoting share class.
Meta reported Q3 revenue of $64.60 billion, against the $63.37 billion LSEG estimate. Revenue jumped 26% from a year ago.
Earnings per share came in at $3.83, up from $1.05 a year earlier and above the $3.57 consensus. That result came despite a $9.89 billion legal charge tied to a settlement with 52 state attorneys general over teen mental health litigation.
Shares gain after hours on Q4 guidance
Meta expects fourth-quarter revenue of $73 billion to $76 billion, a range whose midpoint sits above analyst estimates of $73.73 billion. In after-hours trading, the stock was up 5.16%.
Not every metric beat. Daily active people reached 3.64 billion, trailing the 3.65 billion analysts expected, according to StreetAccount. Operating income also fell short of expectations, reflecting the legal charge.
Capex range narrows to $135 billion to $145 billion
Meta now expects full-year capex of $135 billion to $145 billion, narrowed from $130 billion to $145 billion. The company spent $34.91 billion in capital expenditures in the third quarter, up from $31.08 billion in the second.
According to Business Insider, investors haven't loved Meta's capex forecasts in past quarters. The stock tumbled almost 10% last quarter after earnings per share missed Wall Street estimates.
New nonvoting Class C stock takes effect in January 2027
The board approved a nonvoting Class C common stock, effective Jan. 19, 2027. Meta plans to distribute one Class C share for each Class A and Class B share, which it expects to work like a two-for-one stock split on the market price of Class A shares without changing voting power.
Zuckerberg cites early Muse traction
On the earnings call, Zuckerberg said about 25% of people who downloaded Muse use it every day. He added that Muse is compute-intensive to run in the near term, but he expects it to become highly profitable as computing efficiency improves.
Sources: CNBC, Investing.com, Business Insider
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