$META · Meta Platforms, Inc.
Meta Platforms filed its Q3 FY2026 10-Q, reporting revenue of $64.6B (+26.1% YoY) with GAAP diluted EPS of $3.83 and net income of $9.86B. Advertising revenue rose 26% to $63.1B on higher ad impressions and pricing. However, total costs and expenses surged 68% YoY to $51.6B, with G&A quadrupling to $14.9B from $3.5B. Operating income fell 37% to $13.0B and operating margin compressed to 20.1% from 40% a year ago.
- Revenue hit $64.6B (+26.1% YoY), driven by advertising revenue of $63.1B (+26%).
- Operating income fell 37% YoY to $13.0B as total costs surged 68% to $51.6B.
- G&A expenses quadrupled to $14.9B from $3.5B a year ago, the single largest cost driver.
- Reality Labs lost $4.1B in Q3 on just $443M revenue; nine-month loss reached $12.8B.
- Headcount reduction of ~8,000 employees in May 2026 triggered $1.18B in severance costs.
Extended-hours trading shows META at $681.60, down 2.28% from the regular-session close of $697.52. The cost explosion — particularly the G&A quadrupling — is outweighing the strong 26% revenue growth.
Meta's cost structure is undergoing a dramatic transformation — G&A quadrupled in one year — raising fundamental questions about margin trajectory even as revenue growth remains elite.
Meta's 26% ad revenue growth outpaces most digital-ad peers, but the cost structure is diverging sharply — R&D at 31% of revenue and G&A at 23% suggest AI-infrastructure and legal spending are running well ahead of sector norms.
G&A costs ballooned to 23% of revenue from 7% a year ago, with legal-related costs flagged as a major component. The $1.18B severance charge from the May 2026 layoff of ~8,000 employees signals ongoing restructuring risk. Reality Labs continues to burn over $4B per quarter with no clear path to brea
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