Meta Q3 Results 2026: Ads Boom, Net Income Jumps 264%, Operating Income Falls 37%

Net income jumped 264% to $9.86 billion. Yet operating income went the other way, falling 37% to $12.99 billion, because of a large legal charge, the company said.

In its outlook commentary, Meta's chief financial officer said the AI spending is already showing up in the ad business.

Source : Meta

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Key points generated by AI, verified by newsroom

• Meta's Q3 revenue and net income rose significantly.
• A $9.89 billion legal charge reduced Meta's operating income.
• Advertising revenue grew 26%, driven by increased impressions.

Meta's ad business had a very good three months. Its legal team had an expensive one.

Meta reported that revenue for the July-September quarter rose 26% from a year earlier to $64.60 billion. Net income jumped 264% to $9.86 billion. Yet operating income went the other way, falling 37% to $12.99 billion, because of a large legal charge, the company said.

Meta Ads Grow 26% as Impressions Rise 10%

Advertising is where Meta earns most of its money, and it grew 26% to $63.06 billion in the quarter. Two numbers sit behind that growth. Ad impressions across Meta's apps rose 10% year-on-year, while the average price per ad climbed 14%, the company said.

For comparison, total revenue in the same quarter last year was $51.24 billion. Net income then was $2.71 billion, and earnings per share (diluted) were $1.05. This time, earnings per share came in at $3.83.

Meta Operating Income Falls 37% on Legal Charge

So why did operating income fall? Costs and expenses jumped 68% to $51.61 billion, and a big part of that was a $9.89 billion charge. It relates to an agreement with 52 US state attorneys general to settle litigation over teen mental health and social media.

Meta said that without the charge, operating income would have been $22.88 billion, rather than $12.99 billion, and earnings per share would have been $7.40 instead of $3.83.

Meta Q4 Revenue Forecast: $73-76 Billion

For the October-December quarter, Meta is forecasting revenue of $73 billion to $76 billion. It has also raised its full-year 2026 expense outlook to $175 billion to $179 billion, a figure that includes the legal charge.

Spending on equipment and infrastructure is going up too. Meta now expects capital expenditure of $135 billion to $145 billion this year, up from its earlier range of $130 billion to $145 billion. The money is going into artificial intelligence (AI) infrastructure and other priorities, it said.

Meta Says AI Returns Will Take Longer

In its outlook commentary, Meta's chief financial officer said the AI spending is already showing up in the ad business. "Our AI investments are already delivering substantial incremental advertising revenue through stronger engagement, better recommendations, and more efficient monetization," the commentary said.

The company was upfront that patience will be needed for the rest. The newer investments "will take longer to generate returns than those in our core business", it said, but it expressed confidence in their long-term potential given the range of ways they could make money and the efficiencies they bring inside the company.

Meta expects these investments, together with advances in its AI models and new product launches, to support strong overall revenue growth through 2027. It is still working on its budget and capacity plans for next year.

Input By : ANI