Stock

# Meta Platforms (META)

Meta grew Q3 revenue 26% while a $9.89 billion legal charge cut operating income and heavy AI spending left free cash flow negative for the quarter.

Updated Oct 29, 2026

Information and analysis only, not a recommendation to buy, sell or hold any security. The author may own securities discussed.

Researched and drafted with AI agents. Every figure is taken from a source cited on the page.

Analysis and information

## What it does

Meta runs Facebook, Instagram, WhatsApp and Messenger, and earns its revenue mainly from advertising on them. Its apps reached an average of 3.64 billion daily active people in September 2026. Its Reality Labs unit builds devices.

## Role in the theme

In **Platforms and software**, Meta pays for heavy AI data center spending from advertising cash flow. In Q3 that spending ran ahead of cash generation.

## Latest

- **2026-10-21:** Q3 revenue rose 26% to $64.60 billion. Ad impressions rose 10% and the average price per ad rose 14%.
- **2026-10-21:** Operating income fell 37% to $12.99 billion, after a $9.89 billion charge. The charge relates to an August agreement with 52 state attorneys general over teen mental health litigation, which allows payments of up to about $18.59 billion.
- **2026-10-21:** Capital spending, including finance lease principal, was $34.91 billion. Free cash flow was negative $2.12 billion.
- **2026-10-21:** Meta narrowed its 2026 capital spending range to $135-145 billion, from $130-145 billion. It expects Q4 revenue of $73-76 billion and 2026 total expenses of $175-179 billion.
- **2026-10-21:** Meta plans a new non-voting Class C stock, effective 2027-01-19, issued as one Class C share for each Class A share. It expects the Class A price to reflect the effect of a two-for-one split.

## What to watch

- Capital spending against cash flow, after a quarter of negative free cash flow.
- Payments under the attorneys general agreement.
- Record and payment dates for the Class C stock dividend, which the board has not yet set.
- Next report: Q4 2026 results, date not confirmed.

## Covered in

- Theme: [Platforms and software](/research/themes/platforms-software)

## Sources

Primary means the publisher of the data or the filing; secondary means press or an aggregator.
- [Meta reports third quarter 2026 results](https://investor.atmeta.com/investor-news/press-release-details/2026/Meta-Reports-Third-Quarter-2026-Results/default.aspx)Primary 2026-10-21
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