10-Q · April 30, 2026
Meta Platforms, Inc. reported robust Q1 2026 results with total revenue reaching $56.31 billion, a 33% increase year-over-year, driven largely by advertising revenue growth. The diluted EPS also demonstrated notable…
Earnings analysis · 10-Q
META earnings analysis
Filed October 22, 2026 · Our reading of the company's report
The latest report
Meta delivered strong top-line momentum, with revenue up 26% to $64.601 billion as ad impressions rose 10% and average price per ad increased 14%. However, legal costs and AI-related infrastructure spending sharply…
Read full summary
Meta delivered strong top-line momentum, with revenue up 26% to $64.601 billion as ad impressions rose 10% and average price per ad increased 14%. However, legal costs and AI-related infrastructure spending sharply reduced profitability: operating margin fell to 20% from 40%, operating income declined 37% to $12.988 billion, and diluted EPS was $3.83. Liquidity remains substantial, but the company faces significant legal exposure, $84.00 billion of debt, and $454.52 billion of non-cancelable commitments while planning $135 billion to $145 billion of 2026 capital expenditures.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.83
What stood out
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Advertising drove 26% revenue growth
Third-quarter revenue increased 26% year over year to $64.601 billion, driven primarily by advertising revenue of $63.061 billion, which also increased 26%.
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Ad pricing and monetization remained strong
Ad impressions increased 10% year over year and average price per ad increased 14%; worldwide ARPP rose 23% to $17.72, while DAP increased 3% to 3.64 billion.
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Non-ad FoA revenue expanded
FoA other revenue increased 59% to $1.097 billion, primarily from paid WhatsApp messaging and subscriptions. Nine-month FoA other revenue increased 67% to $2.987 billion.
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Reality Labs losses narrowed modestly
Reality Labs operating loss improved 7% year over year to $4.129 billion, as segment costs and expenses declined 7%, despite revenue declining 6% to $443 million.
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Operating cash generation increased
Cash, cash equivalents, and marketable securities totaled $82.45 billion at September 30, 2026, and nine-month operating cash flow was $96.873 billion, up from $79.586 billion in the prior-year period.
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AI infrastructure investment accelerated
Meta continued investing heavily in AI infrastructure: nine-month purchases of property and equipment were $83.06 billion, while total capital expenditures including finance-lease principal payments were $85.82 billion.
What to watch
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Legal charge sharply compressed margins
Operating income fell 37% year over year to $12.988 billion and operating margin declined to 20% from 40%. General and administrative expense increased 323% to $14.857 billion, including a $9.89 billion legal charge.
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New Mexico judgment creates major exposure
On October 21, 2026, a New Mexico court imposed a $25 billion civil penalty, with 15% post-judgment interest, after a finding involving more than 43 million violations; Meta intends to appeal.
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Youth litigation liabilities remain substantial
The August 2026 youth-related settlement provides for payments of up to approximately $18.59 billion, including $12.7 billion payable over 10 years; a further $5.3 billion remains contingent and was not accrued as of September 30, 2026.
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Infrastructure commitments constrain flexibility
Non-cancelable contractual commitments totaled $454.52 billion at September 30, 2026, including approximately $45.85 billion due in 2026 and $121.41 billion due in 2027.
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Debt issuance is increasing interest costs
Long-term debt increased interest burden: interest expense rose 330% year over year to $977 million in the quarter, while Notes outstanding totaled $84.00 billion at September 30, 2026.
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Reality Labs remains a large loss center
Management expects full-year 2026 Reality Labs operating losses of approximately $18 billion to $19 billion, while third-quarter RL revenue declined 6% to $443 million.
Management's outlook
The 10-Q does not provide explicit revenue or EPS guidance. Management anticipates 2026 capital expenditures of approximately $135 billion to $145 billion, expects fourth-quarter 2026 effective tax rate of 15% to 17%, and expects full-year 2026 Reality Labs operating losses of approximately $18 billion to $19 billion.
Earlier filings 4
10-K · January 29, 2026
Meta describes a strategy of monetizing a dominant Family of Apps (advertising) while investing heavily in AI and the next computing platform via Reality Labs. 2025 saw strong top-line growth (quarterly run-rate →…
10-Q · October 30, 2025
Meta reported strong top-line growth in Q3 2025 with revenue of $51,242 million, up $10,653 million year-over-year from $40,589 million, and operating income rising to $20,535 million. However, net income fell sharply…
10-Q · July 31, 2025
Meta reported strong Q2 results with revenue of $47,516 million and diluted EPS of $7.14, both up materially year-over-year and above consensus. Operating margin expanded to 43.0% and operating cash flow for the six…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.