Meta Q3 revenue jumps 26 percent to $64.6 billion as AI spending rises

Meta Platforms reported third-quarter revenue of $64.6 billion, a 26 percent increase from a year earlier and above Wall Street expectations of about $63.3 billion. The company also raised its 2026 capital spending outlook to between $135 billion and $145 billion, up from a previous floor of $130 billion.

Operating income fell 37 percent to $13 billion from $20.5 billion in the second quarter of 2025, largely because of a $10 billion settlement with state attorneys general over youth safety. Meta expects to pay about $18 billion to the states over the next decade, depending on cooperation from TikTok and YouTube.

“Our investments are paying off, the core business is strong, and we’re seeing velocity across the board.”

Diluted earnings per share came in at $3.83, down from $7.40 before the legal charge. Meta said it would issue a new class of non-voting shares to fund AI efforts, preserve executive control, and support fundraising, compensation, and acquisitions.

Meta shares rose as much as 5 percent in after-hours trading on Wednesday. Chief executive Mark Zuckerberg said investments were paying off and that the Muse AI agent had clear product-market fit after more than 10 million people used it in the United States and Canada during its first six weeks.

The company forecast fourth-quarter revenue between $73 billion and $76 billion. Trading in the new non-voting shares is expected to begin in January.