META 2026 Q3

Reality Labs revenue fell 6% in Q3 as lower Quest headset sales were only partially offset by continued growth in AI glasses revenue, a reversal from the segment's prior growth trajectory.

Per Susan J. Li, CFO

Global average ad price rose 14% year-over-year, driven by ad performance gains and improved macro conditions versus Q3 last year, partially offset by faster growth in lower-monetizing impressions.

Per Susan J. Li, CFO

Commerce activity inside Muse exceeded expectations: Plaid reported unprecedented activity on its connector, and Meta had to work with Stripe to raise credit limits because transaction volumes exceeded expectations in the first week.

“Plaid told us that they had not seen activity like they are seeing with their connector on any other service before.”— Mark Elliot Zuckerberg, CEO

Instagram and Facebook Reels time spent reached all-time highs with double-digit year-over-year growth, and Threads time spent per user grew over 20%, reflecting accelerating engagement across the family of apps.

Per Susan J. Li, CFO

Engagement per person in Meta AI has more than doubled since April, when the company began rolling out its new models, marking a sharp acceleration in usage.

Per Mark Elliot Zuckerberg, CEO

Muse has not yet launched globally; management identified this as the biggest near-term constraint on user growth and plans to expand beyond the U.S. and Canada once efficiency work matures.

Per Mark Elliot Zuckerberg, CEO

Meta launched Muse for small businesses in late September, a new set of skills and connectors targeting the 500 million self-identified small businesses using Meta's apps, a new customer segment push.

Per Susan J. Li, CFO

Meta is building a new Enterprise platform led by CJ Desai to serve businesses via API, Muse Code, and enterprise agents, a newly emphasized growth avenue beyond consumer Muse.

Per Mark Elliot Zuckerberg, CEO

Muse launched and already has more than 10 million U.S./Canada sign-ups within six weeks, more than twice the pace at which Threads started, with strong App Store rankings.

“this is more than twice the level that Threads started at, or where we believe that other AI apps started as well.”— Mark Elliot Zuckerberg, CEO

Partnership ads revenue grew over 97% year-over-year and surpassed a $15 billion annual run rate, a new scale milestone for the product.

Per Susan J. Li, CFO

Meta One, the unified subscription service launched globally in September, has already surpassed 15 million subscriptions and trials, an early adoption milestone.

Per Susan J. Li, CFO

Family of Apps other revenue grew 59%, driven primarily by WhatsApp paid messaging and subscriptions, an acceleration in this emerging monetization line.

Per Susan J. Li, CFO

Advertiser adoption of generative AI video generation tools grew 25% quarter-over-quarter, aided by new ready-made videos that cut generation time to a few seconds.

Per Susan J. Li, CFO

Advertisers adopting Meta AI Business Assistant's recommendations drove almost 5% more conversions at the same cost per conversion and increased ad spend 9% versus non-adopters.

Per Susan J. Li, CFO

Glasses sales continue growing rapidly, and with Muse integration starting next month, management expects paid subscriptions to rise and the glasses business to begin improving meaningfully going forward.

“we expect that paid subscriptions will increase and that this business will begin improving meaningfully from here.”— Mark Elliot Zuckerberg, CEO

Meta Platforms, Inc. Class A (META) -- AI Innovation and Market Resilience | First Eagle Rising Dividend Fund Q3 2026 Meta Platforms, Inc. Class A (META) -- AI Innovation and Market Resilience | First Eagle Rising Dividend Fund Q3 2026 — gurufocus.com · 07 November 2026

GAAP operating income fell 37% year-over-year due to a one-time $9.9 billion legal charge; excluding that charge, operating income would have risen 11%, showing underlying margin expansion despite the reported decline.

Per Susan J. Li, CFO

Management now expects Reality Labs operating losses to decline versus 2025 to a narrower $18-19 billion range for 2026, an improved loss trajectory versus prior framing.

Per Susan J. Li, CFO

Reality Labs operating loss is expected to narrow further to approximately $15 billion in 2027, with the segment trending toward profitability thereafter as investment shifts toward AI.

“operating loss coming down to approximately $15 billion next year and trending toward profitability from there”— Mark Elliot Zuckerberg, CEO

Full-year 2026 total expense outlook was raised to $175-179 billion specifically to incorporate the new $9.9 billion legal charge recognized in Q3.

Per Susan J. Li, CFO

Q3 tax rate of 24% came in above the company's outlook range, driven by the nondeductible portion of legal expenses.

Per Susan J. Li, CFO

Meta expects to improve Muse's compute cost efficiency by more than 10x over the next year, which it says will enable the product to become profitable once revenue scales.

Per Mark Elliot Zuckerberg, CEO

Moving content-understanding models onto Meta's first-party Muse model family reduced per-unit content processing costs by more than 80% across Instagram, Threads, Facebook, and ads in offline evaluations.

Per Susan J. Li, CFO

And Meta Platforms Apple lowers internal AI usage budgets in move to reduce spending — business-standard.com · 05 November 2026

Threads has overtaken X in monthly actives and continues to grow quickly, marking a share-gain milestone versus a key competitor.

Per Mark Elliot Zuckerberg, CEO

Meta reached a multistate attorneys general agreement in August 2026, resulting in a new $9.9 billion legal charge this quarter, a newly resolved regulatory matter with significant financial impact.

Per Susan J. Li, CFO

Management flagged continued scrutiny on youth-related issues, with a number of youth-related trials now scheduled in the coming months in the U.S., signaling heightened near-term legal risk.

Per Susan J. Li, CFO

Meta announced a new nonvoting capital stock class distributed as a stock dividend, effecting a 2-for-1 split with trading starting late January 2027, aimed at broadening financing flexibility while preserving founder voting control.

Per Susan J. Li, CFO

The newly created nonvoting share class is intended to be usable for acquisitions and other corporate purposes, signaling expanded optionality for future M&A funding versus the prior single-financing structure.

Per Susan J. Li, CFO

2026 capital expenditures outlook was narrowed to $135-145 billion from the prior $130-145 billion range, raising the low end of planned spending.

Per Susan J. Li, CFO

Meta is changing its VR device strategy to only ship new headsets after major breakthroughs, pacing down VR investment to prioritize personal superintelligence spending.

Per Mark Elliot Zuckerberg, CEO

Management noted improved macro conditions relative to Q3 of last year contributed to higher ad pricing, an incremental positive shift in the macro backdrop versus the comparable prior-year period.

Per Susan J. Li, CFO