Meta Platforms reported third-quarter revenue of $64.6 billion, a 26 percent increase year-over-year that exceeded analysts' consensus of roughly $63.4 billion. Investors reacted positively to the release: shares rose by about 4 percent in after-hours trading.
Financial results and one-time items
Net income for the quarter rose to $9.9 billion from $2.7 billion a year earlier. Reported earnings per share (EPS) were $3.83; that figure was materially affected by a $9.9 billion one-time charge related to legal proceedings. Excluding that charge, Meta's EPS would have been $7.40.
Advertising and user metrics
Advertising remained the primary growth driver: ad impressions across the company's platforms increased 10 percent year-over-year, while the average price per ad grew by 14 percent. Daily active users across the Facebook, Instagram and WhatsApp family of apps reached 3.64 billion, a 3 percent increase year-over-year.
Outlook and capital spending
Meta guided fourth-quarter revenue to a range of $73–76 billion, signalling continued strength into the year's final months. CEO Mark Zuckerberg said investments in artificial intelligence are already affecting operations: more advanced recommendation systems and more efficient ad delivery are contributing to revenue growth, and the company is pursuing new AI-based products to create additional commercial opportunities.
Meta raised its full-year capital expenditure target to $135–145 billion, up from the previously indicated $130–145 billion range, underscoring ongoing large-scale investment in data centers, technology and AI development. In the third quarter alone, the company spent $34.9 billion on capital expenditures, and free cash flow turned negative to -$2.1 billion.
Capital structure and shareholder considerations
Alongside the earnings release, Meta announced the creation of a new, non-voting Class C share class paired with a share grant roughly equivalent to a 2:1 stock split. The company said this move will give it greater flexibility to finance future growth while preserving Mark Zuckerberg's voting control.
Why this matters
The report highlights two key themes: advertising demand and user engagement remain growth engines, while very large, ongoing AI and infrastructure investments are pressuring near-term cash flow but may generate competitive advantages over time. The strong fourth-quarter revenue guide and the new share-class structure both point to steps intended to finance future expansion.
This article is not investment advice.
