Meta revenue rises 26% as it plans further AI investment

Meta reported a 26% rise in third-quarter revenue to $64.60bn on Wednesday, while operating profit fell 37% as costs climbed. The Facebook and Instagram owner also set out plans to keep investing heavily in AI and create a class of non-voting shares that could be used for future fundraising.

Costs and expenses for the three months to 30 September rose 68% to $51.61bn, including a $9.89bn charge linked to an agreement with 52 US state attorneys general over litigation concerning teen mental health and social media. Operating profit fell to $12.99bn from $20.54bn a year earlier. Meta said it would have been $22.88bn without the charge. Net income rose to $9.86bn from $2.71bn, though the year-earlier figure was weighed down by a much larger tax provision.

Meta now expects 2026 capital expenditure, including principal payments on finance leases, of $135bn–$145bn. Its previous range was $130bn–$145bn, so the upper limit has not risen. The company said it expects to continue investing heavily in its existing business and newer AI initiatives in 2027, although its budget for next year is still being developed. It credits AI with increasing advertising revenue, while saying returns from newer investments will take longer.

Meta’s board has approved a publicly listed Class C share without voting rights. The company plans to distribute one such share for each existing Class A or B share, subject to changes to its incorporation documents that it intends to bring into effect on 19 January 2027. The distribution date has yet to be set. Meta says the new class could be used to raise capital in future, as well as for employee pay and acquisitions. The announcement is not a sale of shares to raise money now.