Meta Beats Revenue Forecast, Raises AI Spending, Plans Nonvoting Share Dividend

Meta brought in $64.6 billion in third-quarter revenue, 26% more than a year earlier and above analysts’ expectations. Alongside the results, the social media company announced a new non-voting share class and raised the low end of its 2026 spending forecast to $135 billion. Together, the moves put its thriving ad business and costly AI push in the same frame. ^1,2

Most of that $64.6 billion came from advertising: Meta’s ad revenue reached $63.06 billion, as ad impressions rose 10% and average prices climbed 14%. But a $9.89 billion legal charge tied to an agreement with 52 US state attorneys general weighed heavily on operating income, which fell 37% to $12.99 billion. Meta said operating income would have been $22.88 billion without the charge. It expects fourth-quarter revenue of $73 billion to $76 billion. ¹

The $135 billion spending floor reflects a bigger bet on AI infrastructure, including computing power and data centres. Meta says AI is already helping its advertising through better recommendations and more effective ad sales. It expects these investments to support revenue growth through 2027. The Class C plan offers another possible way to raise money. Holders of existing Class A and B shares are set to receive one non-voting share each, without changing their voting power. ^1,12

That unchanged voting power matters because CEO Mark Zuckerberg retains control of the company. The share distribution is expected to take effect after Meta’s amended charter takes effect on January 19, 2027. It is a new share dividend, not a conventional split, though its effect on the price is expected to be similar. The initial distribution raises no cash, but Meta says the shares could later support fundraising, employee pay and acquisitions. ^5,12