The core advertising business continues to accelerate (26% revenue growth, 14% ad price increase) while AI investments are driving incremental revenue. The Class C stock dividend is a non-economic event but signals management's confidence in long-term capital needs. Watch for Q4 revenue trajectory and 2027 capex plans in the next earnings call.
Price Chart
Executive Summary
Meta reported Q3 2026 revenue of $64.60B (+26% YoY) and GAAP diluted EPS of $3.83, which includes a $9.89B litigation charge. Excluding the charge, adjusted diluted EPS was $7.40, a 33.7% beat vs consensus of $5.54. The company guided Q4 revenue of $73-76B and raised full-year capex to $135-145B. The board also announced a new non-voting Class C stock dividend, effectively a 2-for-1 split.
Key Facts
- Revenue $64.60B (+26% YoY, 26% constant-currency growth
- GAAP diluted EPS $3.83 (includes $9.89B litigation charge; adjusted diluted EPS $7.40
- Q4 revenue guidance $73-75B vs consensus $63.41B (implied midpoint $74.5B)
- Full-year 2026 capex raised to $135-145B (narrowed from $130-145B)
- Class C common stock dividend (one share per share of Class A and Class B) effective January 2027
- Family of Apps operating income $17.12B (down 31% YoY); Reality Labs loss $4.13B (narrowed 7% YoY)
- Free cash flow -$2.12B (negative due to $33.94B capex)
Financial Impact
Revenue beat consensus by ~$1.2B (1.9%); adjusted EPS beat by $1.86 (33.7%). Q4 guidance midpoint $74.5B vs consensus $63.41B — a ~17% upside.
Risk Factors
- Massive litigation charge ($9.9B) and ongoing youth-related trials could pressure margins
- Capex $135-145B remains elevated, pressuring free cash flow
- Reality Labs losses continue ($4.13B in Q3, expected ~$15B in 2027)
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302915964 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | 144 | $632.95 | awaiting T+60 | — | $623.16 (−1.55%) |
Oct 26, 2026 today | 144 | $631.68 | awaiting T+60 | — | $623.16 (−1.35%) |
Oct 26, 2026 1d ago | 424B5 | $654.61 | awaiting T+60 | — | $623.16 (+4.80%) |
Oct 26, 2026 1d ago | 424B5 | $655.02 | awaiting T+60 | — | $623.16 (+4.86%) |
Oct 26, 2026 1d ago | S-3ASR | $634.19 | awaiting T+60 | — | $623.16 (−1.74%) |
Oct 22, 2026 4d ago | Institutional Cluster | $642.62 | awaiting T+60 | — | $623.16 (−3.03%) |
Oct 22, 2026 5d ago | Court Ruling | $642.62 | awaiting T+60 | — | $623.16 (−3.03%) |
Oct 21, 2026 5d ago | 8-K | $648.85 | awaiting T+60 | — | $623.16 (−3.96%) |
Oct 21, 2026 5d ago | Press Release | $648.85 | awaiting T+60 | — | $623.16 (−3.96%) |
Oct 19, 2026 8d ago | Court Ruling | $694.25 | awaiting T+60 | — | $623.16 (−10.24%) |
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