Meta reported Q3 revenue of $64.6 billion, up 26% year over year, but its bottom line was hit by a $9.9 billion charge tied to a legal settlement over social media and mental health litigation. Excluding that charge, operating income would have been $22.9 billion, up 12%. Meta forecasts revenue of $73 billion to $76 billion for the current quarter, above the $73.7 billion analysts expected. Free cash flow turned negative at $2.1 billion from positive $10.6 billion a year earlier, as capex rose to $34.9 billion from $19.4 billion amid heavy AI spending. The stock is down around 20% from its high and 15% over 12 months, trading at a forward P/E of 18 versus the S&P 500 average of 19, and the author takes a wait-and-see approach.
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Related tickers and likely impact
META
▼ Likely negativeMeta Platforms
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.7T |
| Close on 10/26/2026 | 630.47 |
| Change that session | -1.89% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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