$META · Meta Platforms, Inc.

Meta reported Q3 2026 revenue of $64.60B (+26% YoY) with ad impressions up 10% and average price per ad up 14%. GAAP operating income fell 37% to $12.99B and diluted EPS was $3.83, both crushed by a $9.89B charge for the 52-state AG teen mental health settlement. Excluding that charge, operating income would have been $22.88B and EPS $7.40. Free cash flow was negative $2.12B as capex hit $34.91B. The Board also approved a new non-voting Class C common stock, effective January 2027, with a one-time stock dividend functioning as an economic 2-for-1 split.

Extended-hours last trade at $726.00, +4.08% vs the regular close of $697.52. The market is rewarding the strong core ad business (+26% revenue, 14% higher ad pricing) and the Q4 guide of $73-76B, looking past the one-time $9.89B litigation charge and negative free cash flow.

A $1.8T company growing revenue 26% while simultaneously booking a near-$10B legal charge, burning $2.1B in quarterly free cash flow, and restructuring its equity into a non-voting share class is a 10

Meta's 26% ad revenue growth and 14% pricing gains signal AI-driven monetization is working at scale, widening the gap vs Snap and Pinterest. The $135-145B capex range dwarfs peers and underscores the AI-infrastructure arms race.

The $9.89B charge is only the initial accrual for the $18.59B AG settlement; additional payments remain. Multiple youth-related trials are scheduled in coming months. The Class C stock structure, while preserving Zuckerberg's control, may face governance criticism and potential shareholder lawsuits.