Meta Q3 revenue rises 26% to $64.6 billion as it adds non-voting Class C stock

Meta reported third-quarter revenue of $64.60 billion, up 26% from a year earlier, and capital expenditures of $34.91 billion, the company said in its earnings release. It also announced a new class of publicly listed, non-voting Class C common stock, which it says will help finance the investment needed to compete in AI.

Chief executive Mark Zuckerberg said the quarter included the launch of Muse and Muse Wonder, which he called Meta's first frontier model, as the company works toward "personal superintelligence for everyone." Meta narrowed its 2026 capital expenditure outlook to $135 billion to $145 billion, from $130 billion to $145 billion, and said it expects to keep "investing aggressively" in its core business and AI next year. Free cash flow was negative $2.12 billion in the quarter.

Costs rose 68% to $51.61 billion, including a $9.89 billion charge for its agreement with 52 state attorneys general over teen mental health litigation. Excluding that charge, operating income would have been $22.88 billion. Headcount fell 15% from a year earlier to 66,775. Meta expects fourth-quarter revenue of $73 billion to $76 billion and Reality Labs losses of about $15 billion next year, as it moves investment primarily toward AI.

The Class C shares take effect in January 2027 through a one-time dividend of one Class C share for each Class A and Class B share, which Meta says should affect the Class A price like a two-for-one split without changing anyone's voting power. A special committee of independent directors recommended the structure, citing capital raising, employee compensation and acquisitions, and keeping Zuckerberg's founder-led model. Meta has also signed a Founder Alignment Agreement with Zuckerberg covering his sales of Class C stock.