Meta (NASDAQ: META) raises expense outlook after $9.89 billion charge

What happened

Meta Platforms, Inc. (NASDAQ: META) reported third-quarter revenue of $64.60 billion and raised its expense outlook after a $9.89 billion charge. Costs and expenses were $51.61 billion, income from operations was $12.99 billion, net income was $9.86 billion, and diluted EPS was $3.83.

Revenue rose 26% year over year, while costs and expenses rose 68% and operating income fell 37%. The board also approved a new publicly listed, non-voting Class C common stock with an effective date of January 19, 2027.

It declared a one-time stock dividend of one Class C share for each outstanding Class A and Class B share, contingent on the charter change. Meta said the dividend record date and payment date will be set later.

Key numbers

Metric	Latest	Change	Source
Revenue	$64.60 billion	from $51.24 billion, +26%	SEC 8-K exhibit 99.1
Costs and expenses	$51.61 billion	from $30.71 billion, +68%	SEC 8-K exhibit 99.1
Income from operations	$12.99 billion	from $20.54 billion, -37%	SEC 8-K exhibit 99.1
Net income	$9.86 billion	from $2.71 billion, +264%	SEC 8-K exhibit 99.1
Diluted EPS	$3.83	from $1.05, +265%	SEC 8-K exhibit 99.1

Read more: Meta Platforms (META) stock analysis and investment case

Why it matters

OptimistFi's case is that Meta converts ad scale and engagement into very high-margin cash flow. This filing is mixed for that view because the core business still grew, with Family daily active people at 3.64 billion, ad impressions up 10%, and average price per ad up 14%.

But the legal charge pushed third-quarter costs and expenses higher, and free cash flow was negative $2.12 billion after $34.91 billion of capital expenditures and principal payments on finance leases. That charge was about 15.3% of third-quarter revenue, so the quarter includes a one-time hit rather than a steady rise in operating costs.

Cash, cash equivalents, and marketable securities were $82.45 billion as of September 30, 2026, while dividend and dividend equivalent payments were $1.36 billion. For 2026, Meta now expects total expenses of $175 billion to $179 billion and capital expenditures of $135 billion to $145 billion.

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What's next

Meta will host a conference call at 1:30 p.m. PT 4:30 p.m. ET today. The amended charter is expected to take effect on January 19, 2027, and the board will set the dividend record date and payment date later.

Fourth-quarter revenue is guided to $73 billion to $76 billion, and results inside that range would support the ad-growth view, while a miss would weaken it.

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