Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Total Revenue | $64.6 billion | up 26% |
| Family of Apps Ad Revenue | $63.1 billion | up 26% |
| GAAP Operating Income | $13 billion | 37% decline |
| Reality Labs Revenue | $443 million | down 6% |
| Net Income | $9.9 billion | Not stated |
Guidance and outlook
- Expects fourth quarter 2026 total revenue in the range of $73 billion to $76 billion.
- Expects full year 2026 total expenses in the range of $175 billion to $179 billion.
- Expects 2026 capital expenditures in the range of $135 billion to $145 billion.
- Expects Reality Labs losses to decline to a range of $18 billion to $19 billion for 2026.
How management sounded
Positive (+7 on our -10 to +10 scale). Management expressed high confidence in the early success of Muse and the continued strength of the core business, while clearly outlining a strategy to scale AI investments and improve profitability. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Muse Growth Constraints
Asked: Morgan Stanley asked about the limiting factors for Muse user growth.
Answer: Mark Zuckerberg noted that compute intensity is a constraint, limiting global rollout, and the company is focused on improving compute efficiency to serve more users.
Enterprise Strategy
Asked: Morgan Stanley asked about the vision for the Meta enterprise product offering.
Answer: Management explained that the near-term focus is on model APIs and business agents, with a long-term goal of creating a business network of agents.
Agentic Commerce Friction
Asked: Goldman Sachs asked how Meta will handle friction with aggregators or suppliers regarding agent interactions.
Answer: Management stated they are developing a personal agent protocol with industry partners to enable secure, permissioned interactions between consumer and business agents.
2027 Outlook
Asked: Bank of America asked if revenue growth next year includes incremental AI contributions.
Answer: Susan Li confirmed that while the core business remains strong, the company expects AI products to begin contributing incremental revenue in 2027 through subscriptions and enterprise offerings.
What to watch before the next call
- The progress of Muse compute efficiency improvements and the ability to scale the service globally.
- The development of the personal agent protocol and adoption rates among business partners.
- The impact of the new nonvoting stock class on capital structure and future financing.
