Meta Platforms reported that the company's revenue in the third quarter of 2026 reached $64.6 billion, marking a 26% increase compared to the same period last year. Additionally, the net profit of this unit reached $9.86 billion, indicating a 264% growth compared to the previous year.
Revenue Growth and Operational Challenges
Meta's revenue for the quarter ending September 30, 2026, surpassed $51.24 billion from the previous year. Net profit also increased from $2.71 billion to $9.86 billion, and earnings per share rose to $3.83 from $1.05. Revenue from advertising, which is Meta's primary source of income, increased by 26% to $63.06 billion. The number of ad impressions across Meta's app portfolio also rose by 10%, and the average price per ad increased by 14%.
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Legal Challenges and Their Impact on Operating Income
However, Meta's operating income decreased by 37% to $12.99 billion compared to $20.54 billion last year. This decline was due to a 68% increase in costs and expenses to $51.61 billion, which included a $9.89 billion charge related to an agreement with 52 state attorneys general in the U.S. to settle a lawsuit regarding the mental health of teenagers and social media. Meta stated that without this legal expense, operating income would have reached $22.88 billion, and earnings per share would have increased to $7.40.
Meta appears to forecast revenue between $73 billion and $76 billion for the fourth quarter of 2026, and it has also raised its total expense forecast for the year 2026 to $175 billion to $179 billion. The company has also increased its capital expenditure forecast for 2026 to $135 billion to $145 billion, while continuing to invest in AI infrastructure and other business priorities.
In the comments from the CFO, Meta stated that "our investments in AI are currently generating significant additional advertising revenue through stronger engagement, better recommendations, and more effective monetization." The company also added that its investments in AI models and infrastructure are creating new revenue opportunities, although these investments require more time to yield returns compared to the core business.
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