Meta (META) Q3 Earnings Expected at $5.75 EPS and $63.2B Revenue

Published on 10/21/2026 · Source: cnbc.com

AI Summary

Summarized by AI from the source below

Meta Platforms (META) is set to report third-quarter earnings after market close on Wednesday. Analysts polled by LSEG expect earnings per share (EPS) of $5.75 and revenue of $63.2 billion. The company’s recent launch of the Muse AI personal assistant tool in September has been a notable development, quickly reaching the top of Apple's iOS app store. This AI momentum contributed to Meta’s best month on Wall Street since 2022 at the end of September.

Meta has been rapidly introducing AI technologies, including the recent release of Muse Wonder, supporting ongoing expectations about its AI-driven growth. Investors will also watch whether the company plans to increase capital expenditures (capex) for data centers to support AI infrastructure. Meta previously raised its 2026 capex guidance to a range of $130 billion to $145 billion, a $5 billion increase on the low end, which contributed to a substantial decline in free cash flow, from $8.55 billion a year earlier to $784 million in the second quarter.

Looking ahead, analysts foresee capex increasing further to $196.3 billion in 2027. Meta’s third-quarter daily active people (DAP) across apps like Facebook and Instagram are expected to remain nearly flat at 3.65 billion. The company’s AI-focused spending and innovations remain key focal points for investors assessing future revenue growth and profitability.

This earnings report matters because it will reveal whether Meta’s AI initiatives are translating into financial results and how growing capital investments might affect free cash flow and margins. The Q3 EPS and revenue outcomes will be critical measures for investors evaluating Meta’s ability to sustain growth amid heavy spending on AI infrastructure.

Informational only, not financial advice. Content is AI-generated and may contain errors. How this works.

Our take

Opinion from the Newsstocks AI desk, not investment advice

We think Meta's AI advances demonstrate growth potential, but the large increase in capital expenditures is weighing on cash flow. Future profitability depends on how well AI investments convert into revenue beyond initial user adoption. The coming earnings will clarify if AI momentum is sufficient to offset spending pressures.

Key numbers

Expected Q3 earnings per share: $5.75
Expected Q3 revenue: $63.2 billion
2026 capex guidance range: $130 billion to $145 billion
Expected 2027 capex: $196.3 billion

What could help

Strong AI product adoption like Muse AI personal assistant
Potential for AI investments to drive future sales growth

What could hurt

Heavy capital spending is shrinking free cash flow

What to watch next

Meta will report its third-quarter earnings after market close on Wednesday.

The background

Earnings reports show a company's quarterly financial results, including profit and revenue. Capital expenditures reflect spending on physical assets like data centers.

Questions readers ask

How is Meta's recent AI development impacting its financial outlook?

Meta's Muse AI assistant has gained early success, helping record its best Wall Street month since 2022, but the company's growing AI infrastructure spending is also increasing capital expenditures and reducing free cash flow.

What is Meta's capital expenditure guidance for 2026 and 2027?

Meta narrowed its 2026 capital expenditure guidance to between $130 billion and $145 billion, with expectations of growing to $196.3 billion in 2027.

About Meta Platforms Inc. (META)

Meta Platforms owns Facebook, Instagram, WhatsApp, and Messenger, earning almost all of its revenue from digital advertising while investing heavily in AI and the metaverse.

The Communication Services sector covers media, entertainment, telecom and interactive companies that connect and inform people.