TLDR
Meta stock jumps 3.57% after hours as earnings and Muse AI launches draw attention.
Meta’s revenue hits $64.6B as ad prices rise 14% and impressions jump 10% yearly.
Zuckerberg rolls out Muse AI models as Meta targets personal superintelligence.
A $9.89B legal charge cuts Meta’s operating margin to 20% from 40% in Q3 2026.
Meta spends $34.91B on capital projects as free cash flow turns negative in Q3.
Meta Platforms (META) shares surged after hours as third-quarter revenue reached $64.60 billion and management highlighted new AI models. Chief Executive Mark Zuckerberg also highlighted the launch of new artificial intelligence models. However, a major legal charge reduced operating profit despite strong advertising growth.
Meta Stock Rallies as Zuckerberg Highlights New AI Models
Meta stock rose 0.47% to $697.52 during Wednesday’s regular session, before the company released its third-quarter earnings. Following the earnings release, shares advanced 3.57% to $722.42 in after-hours trading. The stronger late move followed the company’s latest update on earnings and technology.
Meta Platforms, Inc., META
Zuckerberg outlined the recent launches of Muse and Muse Wonder as Meta expanded its ambitions in frontier AI development. He linked the new technology to the company’s goal of delivering personal superintelligence. Meta presented these developments alongside progress across its core business and technology operations.
Meta’s family of applications averaged 3.64 billion daily active people in September, up 3% from September 2025. Meanwhile, advertising impressions increased 10%, and average prices per advertisement climbed 14%. Together, those gains reflected growth in advertising activity and prices across Meta’s platforms.
Meta Revenue Climbs 26% as Operating Costs Surge
Quarterly revenue increased 26% from $51.24 billion in the comparable period last year. Meta reported the same growth rate on both reported and constant currency bases. Advertising trends helped explain the sales performance as the company expanded its technology efforts.
Total costs and expenses jumped 68% to $51.61 billion from $30.71 billion, including the litigation-related charge. Consequently, operating income dropped 37% to $12.99 billion from $20.54 billion. Meta’s operating margin fell to 20% from 40% in the year-earlier period.
Net income rose 264% to $9.86 billion from $2.71 billion a year earlier. Meanwhile, diluted earnings per share grew 265% to $3.83 from $1.05. Meta reported a 24% effective tax rate, compared with 87% last year.
Meta Faces $18.59 Billion Legal Settlement as Capital Spending Grows
In August, Meta reached an agreement with 52 attorneys general over teen mental health and social media litigation. The agreement calls for payments of up to approximately $18.59 billion. Meta included a $9.89 billion related charge in its third-quarter costs and expenses.
Excluding that charge, operating income would have totaled $22.88 billion, Meta calculated. Diluted earnings per share would have reached $7.40 instead of the reported $3.83. The company’s adjusted calculation also lowered its effective tax rate to 17%.
Meta spent $34.91 billion on capital expenditures, including finance lease principal payments. Operating cash flow reached $32.79 billion, while free cash flow totaled negative $2.12 billion. Meta held $82.45 billion in cash and marketable securities, paid $1.36 billion in dividends, and reduced headcount 15% to 66,775.
The post Meta Platforms (META) Stock: Jumps as Zuckerberg Unveils AI Breakthroughs and Revenue Hits $64.6B appeared first on Blockonomi .
