Meta Q3 revenue rises 26% to $64.60 billion as legal charge cuts operating income 37%

Meta reported third-quarter 2026 revenue of $64.60 billion on Wednesday, up 26% from $51.24 billion a year earlier, according to its earnings release.

Legal charge hit operating income. Meta says income from operations fell 37% to $12.99 billion, a 20% operating margin, down from 40%. The quarter included a $9.89 billion charge tied to its August agreement with 52 state attorneys general over teen mental health litigation. Excluding it, operating income would have been $22.88 billion.

Net income jumped 264%. Meta says net income rose to $9.86 billion and diluted EPS was $3.83, or $7.40 excluding the charge. Revenue beat the $63.37 billion LSEG estimate, CNBC reported; CNBC said it was unclear whether EPS was comparable to the $5.75 analysts expected.

Users and ads. Family daily active people averaged 3.64 billion in September, up 3%. Ad impressions rose 10% and average price per ad rose 14%.

Reality Labs. Meta says Reality Labs lost $4.13 billion on $443 million in revenue, versus a $4.43 billion loss a year earlier. It expects full-year Reality Labs losses of $18 billion to $19 billion.

Spending and outlook. Capital expenditures, including finance lease principal payments, were $34.91 billion. Meta narrowed full-year capex guidance to $135 billion to $145 billion from $130 billion to $145 billion and raised full-year expense guidance to $175 billion to $179 billion to include the charge. It expects Q4 revenue of $73 billion to $76 billion.

New share class. Meta also plans a non-voting Class C common stock, effective in January 2027, to be distributed to shareholders as a stock dividend.

Meta will hold its Q3 earnings call at 4:30 PM AST on Wednesday.