Meta Platforms Inc (NASDAQ:META) dropped its third-quarter report after the closing bell on Wednesday, and the numbers were the kind that make analysts double-check their spreadsheets. Revenue came in at $64.6 billion, comfortably ahead of the $63.37 billion consensus. Adjusted earnings landed at $7.40 per share, blowing past estimates of $5.74 per share, according to market data.
Total revenue climbed 26% on a year-over-year basis. Family daily active people rose 3% year-over-year. Ad impressions jumped 10%, and the average price per ad increased 14% year-over-year. Meta also noted its headcount was down 15% year-over-year to 66,775 as of June 30.
On the cash side, Meta generated $32.79 billion in cash flow from operations, while free cash flow was negative $2.12 billion during the quarter. The company ended the period with $82.45 billion in cash, cash equivalents and marketable securities.
"We hit major milestones this quarter toward delivering personal superintelligence for everyone — including launching Muse and Muse Wonder, our first frontier model," said Mark Zuckerberg, founder and CEO of Meta Platforms. "Our investments are paying off, the core business is strong, and we're seeing velocity across the board."
Looking ahead, Meta expects fourth-quarter revenue in the range of $73 billion to $76 billion, versus estimates of $73.74 billion. Full-year 2026 expenses are now projected at $175 billion to $179 billion, up from prior guidance of $165 billion to $169 billion. The bump is due to a $9.9 billion charge related to legal proceedings recognized in the third quarter. The company also anticipates full-year capital expenditures of $135 billion to $145 billion, compared to prior guidance of $130 billion to $145 billion.
In a move that will reshape the share structure, Meta announced plans to establish a new class of common stock (Class C), effective January 2027. The board declared a one-time stock dividend of one share of Class C common stock for each outstanding share held, to be paid after the new class becomes effective. Think of it as a two-for-one stock split in all but name.
Meta management will further discuss the quarter on an earnings call at 4:30 p.m. ET.
