Meta Q3 Revenue Hits Record $64.6B, Creates Class C Shares to Fund AI

What happened

Meta reported after the market close on Oct 21: third-quarter revenue of $64.6 billion, up 26% year over year and above analyst expectations, with net income of $9.86 billion, or $3.83 per share. The bottom line was dragged down by a $9.89 billion one-time legal charge tied to the August agreement with 52 state attorneys general over teen mental health and social media, which provides for payments of up to about $18.59 billion. Excluding the charge, earnings would have been $7.40 per share.

The bigger structural move came alongside the numbers: Meta will create a new class of non-voting Class C common stock, issued as a one-time stock dividend to holders of common and supervoting shares — effectively a 2-for-1 stock split — with an effective date of Jan. 19, 2027. Meta said the creation of the Class C stock will continue its founder-led model and will not change Zuckerberg's or other shareholders' voting power.

The market's read: shares rose about 4% in after-hours trading. Meta also guided fourth-quarter revenue of $73-76 billion and raised its 2026 full-year capital-expenditure range to $135-145 billion, from $130-145 billion. CFO Susan Li did not give a 2027 capex figure but said leaders expect to continue investing aggressively in both the core business and AI.

Key facts

Compiled from Oct 21 reporting by The Wall Street Journal, The Times and the New York Post: revenue $64.6B (+26%, vs. an average analyst estimate of about $63.4B); net income $9.86B (vs. $17.2B expected); the Class C shares carry no votes, arrive via stock dividend, take effect Jan 19, 2027, and leave Zuckerberg's voting control untouched; full-year 2026 capex is now expected at $135-145B; Q4 revenue guidance is $73-76B; free cash flow was negative $2.1B — the first negative quarter since Meta became a public company.

Meta said in a statement that the creation of the Class C common stock 'will continue the founder-led model that has driven the company's success since its inception.' Zuckerberg said in the release: 'Our investments are paying off, the core business is strong, and we are seeing velocity across the board.'