From The Motley Fool · Motley Fool Transcribing · · 2m
Meta Q3 2026 Earnings Report Highlights
Meta reports 26% revenue growth with Muse AI adoption surging.
In brief
Meta reports 26% revenue growth with Muse AI adoption surging. Meta's Q3 2026 earnings show $64.6 billion revenue up 26% with Muse AI reaching 10 million users in US and Canada. Originally reported by The Motley Fool.
Q3 Revenue
Meta reported $64.6 billion revenue, growing 26% year over year on both reported and constant currency basis.
Family Daily Active People
3.64 billion Family Daily Active People on average for September 2026, representing a 3% year over year increase.
Ad Revenue Growth
Family of Apps Ad Revenue reached $63.1 billion, increasing 26% year over year driven by ad performance gains and user engagement.
Ad Impressions
Ad impressions increased 10% year over year, supported by ad load optimizations and healthy growth across all regions.
Average Price Per Ad
Average price per ad increased 14% year over year, reflecting improved macroeconomic conditions and system performance gains.
GAAP Diluted EPS
GAAP Diluted EPS was $3.83, including a $9.89 billion charge related to the multistate attorneys general agreement.
Adjusted Diluted EPS
Adjusted Diluted EPS was $7.40 excluding the impact of the $9.89 billion litigation charge recognized in the third quarter.
Operating Margin
Operating margin was 20%, which would have been 35% if the legal settlement charge were excluded.
Reality Labs Revenue
Reality Labs Revenue was $443 million, decreasing 6% due to lower Quest headset sales, partially offset by growth in AI glasses revenue.
Capital Expenditures
Capital expenditures were $34.9 billion, driven by investments in servers, data centers, and network infrastructure.
Free Cash Flow
Free cash flow was negative $2.1 billion, reflecting a significant increase in capital investments for AI infrastructure.
Muse Adoption
Muse Adoption reached 10 million users in the United States and Canada within six weeks of launch, with 25% using the service daily.
Threads Engagement
Threads Engagement increased by over 20% year over year as the platform overtook X in monthly active users.
Partnership Ads Revenue
Partnership Ads Revenue reached $15 billion annual run rate, representing growth of over 97% year over year.
Meta 1 Subscriptions
Meta 1 Subscriptions reached 15 million subscriptions and trials since global expansion of the unified service.
Generative AI Ad Tools
Nearly 10 million advertisers used at least one generative AI creative tool during the quarter.
The key point
Meta's Q3 2026 earnings show $64.6 billion revenue up 26% with Muse AI reaching 10 million users in US and Canada.
