Meta Platforms delivered stronger-than-expected third-quarter growth Wednesday, providing investors with fresh evidence that its enormous artificial-intelligence investment program is supporting revenue growth even as spending continues to rise sharply.
Revenue climbed 26% from a year earlier to $64.60 billion. Net income reached $9.86 billion, while diluted earnings were $3.83 per share.
The results included a $9.89 billion charge associated with Meta’s agreement with U.S. state attorneys general to resolve litigation involving teen mental health and social media.
Artificial intelligence remains the central investment story.
Meta narrowed its expected 2026 capital expenditures to between $135 billion and $145 billion. Third-quarter capital spending reached approximately $34.9 billion as the company continued building the computing infrastructure required for its AI strategy.
The company is simultaneously trying to demonstrate that those investments can generate revenue rather than simply consume cash.
Meta’s Muse AI products have surpassed 10 million users, while management says AI is improving engagement and advertising performance across its existing platforms.
Advertising remains Meta’s financial engine. Higher ad prices and increased impressions helped drive the quarter’s revenue growth.
The company also announced the establishment of a new Class C non-voting share structure, giving Meta additional flexibility for investments, acquisitions and employee compensation while preserving its existing voting-control structure.
For markets, the quarter matters beyond Meta itself.
Investors have increasingly questioned whether the enormous amounts flowing into AI infrastructure can produce returns quickly enough to justify technology valuations. Meta’s revenue growth provides evidence that AI investment can strengthen an already profitable advertising business, but the extraordinary capital requirements remain part of the equation.
The next test is whether Meta can maintain advertising growth while converting newer AI products into meaningful standalone businesses.
