Meta Stock Rises as Earnings Beat and AI Spending Climbs

Meta stock rose more than 4% in after-hours trading after the company reported third-quarter 2026 revenue of $64.6 billion, up 26% year on year and above analyst estimates. Earnings per share were $3.83, including a $9.89 billion charge related to a settlement with US state attorneys general; excluding that charge, EPS would have been $7.40. Advertising revenue climbed 26% to about $63.1 billion, as both ad impressions and prices increased. Meta said its Muse AI agent had reached more than 10 million accounts in the US and Canada within six weeks. The company forecast fourth-quarter revenue of $73 billion to $76 billion, with the midpoint above Wall Street expectations. It also raised its 2026 capital expenditure outlook to $135 billion-$145 billion and reported negative third-quarter free cash flow of $2.12 billion. Meta plans to distribute non-voting Class C shares in January 2027, effectively creating a 2-for-1 stock split while preserving Mark Zuckerberg’s voting control. The results and outlook supported Meta stock, but investors will watch whether heavy AI investment can produce lasting revenue and earnings growth.