Meta Posts Record $64 Billion Q3 Revenue, Announces 2-for-1 Stock Split
Earnings per share came in at $3.83 after a $9.89 billion charge tied to the teen social media lawsuit settlement.
Meta reported third-quarter 2026 revenue of $64 billion, a company record, beating the analyst consensus of $63.3 billion, according to deadline.com. The company also announced a 2-for-1 stock split that creates a new class of Class C shares.
Earnings per share came in at $3.83. Meta said the figure would have been $7.40 excluding legal expenses; the quarter's costs and expenses included a $9.89 billion charge related to the teen social media users lawsuit settlement reached in August.
That settlement provides for payments of up to about $18.59 billion to the plaintiffs and others.
The new Class C shares are set to begin trading in January 2027 and will be offered to existing shareholders. Meta said proceeds from the new share issue will help fund its AI spending.
On a call with analysts, CFO Susan Li said Meta has a number of youth-related trials scheduled in the coming months in the U.S.
AI push continues
Meta recently launched the virtual assistant Muse and the frontier model Muse Wonder as it sought traction in AI. CEO and co-founder Mark Zuckerberg has positioned AI spending as a central priority for the company.
Quick answers
When will Meta's Class C shares begin trading?
Meta said the new Class C shares are set to begin trading in January 2027.
Why was Meta's earnings per share lower this quarter?
Meta reported EPS of $3.83, which it said would have been $7.40 excluding legal expenses, including a $9.89 billion charge tied to the teen social media lawsuit settlement.