Meta $META Platforms reported third-quarter revenue of $64.60 billion on Wednesday, up 26% from $51.24 billion a year earlier.
That topped analyst expectations of $63.34 billion, according to The Associated Press, and of $63.37 billion, according to CNBC. On a call with analysts, Meta CEO Mark Zuckerberg said Muse, the company’s AI agent, has drawn account sign-ups from over 10 million people across the U.S. and Canada, according to the AP.
About 25% of those account holders use Muse on a given day, Zuckerberg said, according to the AP. The agent is restricted to adults aged 18 and up, and it aims to assist with calendars, purchases and similar errands. Zuckerberg said running Muse demands a great deal of computing capacity, though he anticipates a gain of over tenfold in cost efficiency over the coming 12 months, which he said would allow it to earn a profit as its revenue streams grow large enough, according to the AP.
In a statement, Zuckerberg said the quarter included "launching Muse and Muse Wonder, our first frontier model."
Net income was $9.86 billion, or $3.83 a diluted share, compared with $2.71 billion, or $1.05, a year earlier. Total costs and expenses rose 68% to $51.61 billion, including a $9.89 billion charge tied to an August agreement with 52 attorneys general to resolve litigation over teen mental health and social media. Excluding that charge, diluted earnings per share would have been $7.40, the company said.
Family daily active people averaged 3.64 billion in September, up 3% from a year earlier. Ad impressions rose 10% and the average price per ad rose 14%.
Meta expects fourth-quarter revenue of $73 billion to $76 billion. It narrowed its 2026 capital expenditure outlook to $135 billion to $145 billion from $130 billion to $145 billion. The company projects Reality Labs losses will shrink to roughly $15 billion in 2027, with its investment moving toward AI.
Meta also disclosed in a filing that its board approved a new class of non-voting Class C common stock, with an effective date of Jan. 19, 2027. The board declared a one-time dividend of one Class C share for each outstanding Class A and Class B share, contingent on the charter amendment taking effect. The board has yet to set the record and payment dates.
Meta stock ended Wednesday's regular session 0.5% higher and added to its gains in extended trading once the results came out.
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