Meta shares rise after hours as Q3 revenue beats and board creates non-voting Class C stock

Results and share reaction

Meta Platforms reported third-quarter revenue of $64.60 billion on Wednesday, Oct. 21, 2026, a 26% increase from the same quarter in 2025, in a release issued after U.S. markets closed. Net income was $9.86 billion and diluted earnings per share were $3.83, the company said. ^[1]

Shares were up about 3% in after-hours trading, TheStreet reported. Meta had been the first large technology company to report this earnings season, and analysts surveyed by Bloomberg expected revenue of about $63.3 billion, according to a Yahoo Finance preview. That preview showed the stock trading at $708.14, up 2.0%, at 2:07 p.m. Eastern during the regular session. ^{[2] [3]}

Meta's own disclosures do not say why searches for "meta stock" rose on Wednesday. The company did report results on the same day. ^[1]

What the company reported

Income from operations fell 37% to $12.99 billion, and the operating margin was 20% against 40% a year earlier. Costs and expenses rose 68% to $51.61 billion. The figures include a $9.89 billion charge tied to an agreement announced in August with 52 state attorneys general to resolve teen mental health and social media litigation, which provides for payments of up to about $18.59 billion. Without the charge, Meta said, diluted EPS would have been $7.40. ^[1]

Ad impressions rose 10% and the average price per ad rose 14%. Family daily active people averaged 3.64 billion in September, up 3%. Capital expenditures were $34.91 billion, and operating cash flow of $32.79 billion left free cash flow negative at $2.12 billion. Headcount was 66,775, down 15% year over year. ^[1]

Guidance and spending

Meta guided fourth-quarter revenue to $73 billion to $76 billion. TheStreet put analyst estimates at about $73.6 billion. Meta said it is not giving a full-year 2027 revenue outlook but expects strong overall revenue growth through 2027. ^{[1] [2]}

The company now expects 2026 capital expenditures of $135 billion to $145 billion, narrowed from $130 billion to $145 billion. It raised its 2026 total expense outlook to $175 billion to $179 billion to include the legal charge, and expects Reality Labs losses of $18 billion to $19 billion this year, narrowing to around $15 billion in 2027. ^[1]

"Our investments are paying off," chief executive Mark Zuckerberg said in the release. ^[1]

New Class C stock

Meta's board approved a new class of publicly listed, non-voting Class C common stock, effective Jan. 19, 2027, following a recommendation from a special committee of independent directors. The board declared a one-time stock dividend of one Class C share for each Class A and Class B share. Record and payment dates have not been set. ^[1]

Meta said it expects the Class A price to reflect the effect of a two-for-one split after payment, and that the dividend does not change any shareholder's voting power. The company cited capital raising, employee compensation and possible acquisitions as reasons for the new class, and said it has a Founder Alignment Agreement with Zuckerberg covering his sales of the new shares. Shareholders have already approved the charter change by written consent. ^[1]

Open questions

TheStreet reported that Meta's credit default swaps reached a record 114.8 basis points before the report. One outlet, Invezz, also reported a $25 billion penalty imposed by a New Mexico judge; that claim was not found in Meta's release or in the other sources reviewed and is not confirmed here. Closing prices for Oct. 22 will show whether the after-hours gain holds, and Meta has said it will file more detail on the Class C structure with the SEC. ^{[1] [2] [4]}