Meta Q3 2026: Revenue Rises 26% Despite Legal Expenses

Meta Platforms reported third quarter 2026 revenue of $64.60 billion, a 26% increase compared to $51.20 billion in the same period last year. The results, announced in an 8-K filing and accompanying press release, come as the company simultaneously unveiled plans for a new class of common stock and a related dividend, alongside a substantial litigation charge that weighed on profitability.

Alongside the earnings report, Meta’s board approved the creation of a new non-voting Class C common stock and a one-time stock dividend of one share of Class C stock for each share of existing Class A and Class B common stock, contingent upon the completion of a charter amendment. The company also entered into a Founder Alignment Agreement with Mark Zuckerberg, restricting the sale of Class C shares to maintain his voting power. This move suggests a strategic effort to balance shareholder returns with maintaining control of the company.

The quarter’s financial performance was also impacted by a $9.9 billion charge related to legal proceedings, increasing total costs and expenses to $51.61 billion, up 68% year-over-year. Despite this significant expense, Meta's operating income remained positive. Capital expenditures totaled $34.91 billion for the quarter. Daily active people across the Family of Apps reached 3.64 billion on average for September, a 3% year-over-year increase. Ad impressions rose by 10% over the same period, and the average price per ad increased by 14%.

Looking ahead, Meta anticipates fourth quarter 2026 revenue to fall between $73 and $76 billion. The company expects full-year 2026 expenses to be in the range of $175 to $179 billion, reflecting the impact of the legal charge. Management projects Reality Labs losses to decline compared to 2025, estimating a range of $18 to $19 billion for the year.

The reported 26% revenue growth demonstrates Meta's continued momentum in a competitive digital advertising landscape, despite the headwinds of increased operating expenses and significant legal costs. The introduction of a new stock class and dividend signals a commitment to returning value to shareholders, while the restrictions on Mr. Zuckerberg's stock sales aim to preserve long-term control. These developments position Meta as a major player in the tech sector, navigating both growth opportunities and emerging challenges.