Meta beats on revenue and splits its stock with nonvoting shares to raise capital

What happened

shares rose about 2% in after-hours trading today after the social networking company beat third-quarter revenue expectations and unveiled nonvoting Class C shares that will act as a two-for-one stock split. The earnings figure absorbed a $9.89 billion charge for the agreement Meta reached in August with 52 attorneys general to settle litigation over teen mental health and social media.

UPDATED 18:54 EDT / OCTOBER 21 2026 APPS Meta beats on revenue and splits its stock with nonvoting shares to raise capital by Duncan Riley Meta Platforms Inc.

30, Meta reported diluted earnings per share of $3.83, up from $1.05 a year earlier, on revenue of $64.60 billion, up 26% year-over-year. Analysts were expecting earnings of $3.56 per share on revenue of $63.3 billion.

Excluding the charge, earnings would have been $7.40 per share. Operating margin fell to 20% from 40% as total costs and expenses jumped 68%, to $51.61 billion.

Net income still rose, to $9.86 billion from $2.71 billion, because a onetime tax charge had depressed last year’s number. Advertising made up $63.06 billion of revenue, with the average price per ad climbing 14% on 10% more impressions.

Daily active people across Meta’s apps averaged 3.64 billion in September, up 3%. Capital expenditures, including principal payments on finance leases, came to $34.91 billion, more than the $32.79 billion in cash generated by operations.