Meta reports $64.6 billion third-quarter revenue amid rising costs

Meta Platforms reported third-quarter 2026 revenue of $64.6 billion, a 26% increase year-over-year. However, operating income fell 37% to $13 billion as operational costs surged 68% to $51.6 billion. This cost increase includes a $9.89 billion legal charge following a settlement with 52 attorneys general regarding teen mental health claims.

Net income rose to $9.9 billion, up from $2.7 billion the previous year. The company’s Reality Labs division reported a $4.1 billion loss on $443 million in revenue. Meta projects total Reality Labs losses for 2026 will reach between $18 billion and $19 billion.

To protect Mark Zuckerberg’s control, Meta approved a new class of nonvoting Class C shares. This new class will be distributed as a dividend, with one Class C share issued for every outstanding Class A and Class B share, contingent on a charter change effective January 19, 2027. This structure allows the company to issue stock for acquisitions and capital expenditures without diluting voting power.