Meta just posted the biggest quarter in its history — with a very large asterisk. The company reported record third-quarter revenue of $64.6 billion, up 26% year over year and ahead of the $63.37 billion consensus, driven by $63.06 billion in ad revenue.
The advertising engine is humming: ad impressions rose 10% and the average ad price climbed 14%, while 3.64 billion people used Meta’s apps daily. But the bottom line told a different story: a $9.89 billion one-time charge tied to the company’s teen mental-health settlement with 52 U.S. state attorneys general held net income to $9.86 billion — still up 264%, but far below what the revenue line implied. Without the charge, earnings per share would have been $7.40 instead of $3.83.
Meta also announced a structural change: the board approved a new non-voting Class C common stock effective January 19, 2027 — effectively a 2-for-1 stock split with no change to voting power.
Looking ahead, the company guided Q4 revenue of $73–76 billion and raised its full-year AI infrastructure spending to $135–145 billion, even as headcount fell 15%.
The quarter captures Meta’s paradox perfectly: an advertising machine running at record speed, funding an AI buildout of unprecedented scale — while the costs of its past catch up in billion-dollar increments.
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Bhudev Bhagaliya is an experienced and senior journalist who has carved a distinct niche for himself in the world of Hindi journalism through his profound understanding and precise writing style. With over two decades of experience in the field of journalism, he has held key responsibilities at Dainik Hindustan for 12 years and at Amar Ujala for one year. Currently, he serves as the Content Editor for the Jagrook Youth News newspaper and portal, where he plays a crucial role in ensuring the quality and credibility of the news content. Bhudev Bhagaliya consistently writes about issues that help raise awareness within society and among the younger generation.