- Q3 revenue rose 26% year over year to $64.6B, beating the $63.4B consensus.
- Net income jumped 264% to $9.86B, but came in at about half the $17.2B analysts expected, reflecting $9.9B in costs booked for a social-media lawsuits settlement; EPS $3.83 vs $5.75 estimated.
- Meta's stock was up 5% in after-hours trading following the results.
- Meta raised its 2026 capital-expenditure outlook to between $135B and $145B, reflecting spending on advanced chips, data centers and infrastructure for Muse and other AI products.
- The investment is weighing on cash generation: Meta reported a $2.12B free-cash-flow deficit for the quarter.
- Meta plans to issue non-voting Class C stock in January 2027 — a two-for-one split in economic terms — to fund AI expansion, acquisitions and talent retention without weakening Zuckerberg's voting control.
- CFO Susan Li said Meta expects its AI businesses to begin adding revenue in 2027, from business tools, subscriptions and commerce completed through agents.
- Meta is redirecting Reality Labs investment toward AI, aiming to narrow the unit's losses from $19.1B in 2025 to about $15B next year.
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