# Meta Q3 2026 Earnings Report Highlights

> Meta reports 26% revenue growth with Muse AI adoption surging.
- Title: Meta Q3 2026 Earnings Report Highlights · The Motley Fool
- Summary: 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…
- Keywords: meta, muse, revenue, earnings, meta 1, threads, reality labs, ad revenue, finance, money, 2026, Report
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/10/21/meta-meta-q3-2026-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-10-22T00:38:15+00:00
- Read time: 2 min
- Topics: meta, muse, ai, revenue, q3, earnings, meta 1, threads, reality labs, ad revenue, finance, money
## 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.
## Key takeaway

Meta's Q3 2026 earnings show $64.6 billion revenue up 26% with Muse AI reaching 10 million users in US and Canada.