Meta expects its 2026 capex to be $135B-$145B, vs. $130B-$145B previously, and forecasts Q4 revenue of $73B-$76B, vs. $73.6B est.; META jumps 3%+ after hours (Riley Griffin/Bloomberg)

Meta Platforms reported its Q3 2026 earnings on October 21, 2026, showing a 26% increase in revenue to $64.6 billion, surpassing analyst expectations. However, operating margins contracted sharply from 43% in Q3 2024 to just 20%. The company's shares rose 3.79% in after-hours trading to $723.93 following the results. Despite the revenue growth, Meta faced significant profitability pressures, with dilutive earnings per share of $3.83, beating the estimated $3.57 by 7.28%.

The $9.9 billion legal settlement charge with U.S. State Attorneys General contributed to the margin compression. Advertising revenue, which accounts for the majority of Meta's business, grew 58% year-over-year to $63.1 billion, with steady growth across all regions. The U.S. and Canada segment lead with $28.4 billion, while Europe contributed $14.2 billion, Asia-Pacific added $11.5 billion, and Rest of World generated $8.9 billion.

Reality Labs, Meta's VR and AR division, generated $443 million in revenue but reported an operating loss of $4.1 billion. The company's expense structure increased significantly, with total expenses as a percentage of revenue rising from 58% in Q3 2024 to 84% in Q3 2026. Research & Development expenses grew to 31% of revenue, while Marketing & Sales expenses increased to 9%.

Despite the profitability challenges, Meta's core user metrics remained strong. The Family Daily Active People reached 3.64 billion in Q3 2026, a 10.6% increase from 3.29 billion in Q3 2024. Monetization efforts showed positive growth, with Family Average Revenue per Person increasing from $12.29 to $17.72, a 44% growth over two years.