Meta Platforms reported revenue of $64.60B, above the $63.33B expected and up 26% year over year, but EPS of $3.83 fell well short of the $5.89 forecast due to one-time charges, including a $2.4 billion legal settlement, restructuring costs and AI infrastructure spending. Ad revenue rose 28% and headcount fell 15%, while free cash flow in Q3 turned negative for the first time since Meta went public in 2012. Meta also plans to issue non-voting shares to fund AI investments without diluting CEO Mark Zuckerberg's control, and narrowed its FY26 CAPEX outlook to $130-$145B. The article argues the negative free cash flow can be viewed with nuance, citing Muse, Meta's agentic AI platform, which reached 10 million setups in one month, with shopping as the top use case and an average purchase above $200.
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METAearningsartificial intelligenceadvertising
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Related tickers and likely impact
META
• NeutralMeta Platforms
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $1.9T |
| Close on 10/22/2026 | 648.85 |
| Change that session | -6.98% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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