Meta (META): Advertising Growth Meets Higher Legal and AI Costs
Why it is trending
Meta’s advertising business delivered strong revenue growth, supported by higher ad impressions and pricing. Its fourth-quarter revenue outlook points to continued expansion, while a substantial litigation charge compressed operating margins and infrastructure investment pushed free cash flow into negative territory.
Sector
Communication Services. Meta operates digital advertising and social platforms alongside artificial-intelligence and immersive-computing businesses.
Company information
Metric | Company profile |
Sector | Communication Services |
Industry | Interactive Media & Services |
Market capitalization | Approximately $1.78 trillion |
YTD price return | +5.67% |
Dividend yield | 0.30% indicated annual regular cash dividend yield |
Forward P/E (next fiscal year, FY1) | Unavailable |
Price-dependent data use the October 21, 2026 regular-session close of $697.52. Market capitalization is the dated source figure. YTD return excludes reinvested dividends.
Recent earnings
Metric | Q3 2026 results / full-year outlook |
Revenue | $64.601 billion |
Revenue YoY change | +26% reported |
GAAP diluted EPS | $3.83, up 265% YoY |
EPS excluding litigation charge (non-GAAP) | $7.40; excludes only the specified charge |
Operating income / margin | $12.988 billion / 20%, versus 40% a year earlier |
Litigation charge | |
Advertising activity | Ad impressions +10%; average price per ad +14% YoY |
Family daily active people | 3.64 billion, +3% YoY |
Capital expenditures | $34.91 billion, including finance-lease principal |
Free cash flow (non-GAAP) | Negative $2.12 billion |
Q4 revenue guidance (forecast) | $73–76 billion |
Full-year expense outlook (forecast) | $175–179 billion |
Full-year capital-expenditure outlook (forecast) | $135–145 billion, including finance-lease principal |
Earnings trend | Mixed: GAAP diluted EPS YoY growth was +62% in Q1 2026, -13% in Q2 and +265% in Q3. |
Sales trend | Weakening growth rate: reported revenue YoY growth was +33% in Q1 2026, +28% in Q2 and +26% in Q3. |
The EPS comparison reflects significant tax and legal items, including a prior-year tax charge. Trends describe historical reported growth, not a forecast; revenue continued to increase despite slower growth.
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Wednesday October 21, 2026