Meta Q3 Revenue Rises 26% to $64.6 Billion, Plans Non-Voting Class C Stock as Free Cash Flow Turns Negative

Meta Platforms reported third-quarter revenue of $64.6 billion on October 21, up 26% from a year earlier, and said its board has approved a new class of non-voting public stock to be distributed as a one-for-one dividend.

The quarter

• Revenue: $64.601 billion, up 26% year over year
• Income from operations: $12.988 billion, down 37%, for a 20% operating margin versus 40% a year earlier
• Net income: $9.86 billion; diluted earnings per share of $3.83, or $7.40 excluding a $9.89 billion legal charge
• Capital expenditures: $34.91 billion, including finance lease principal payments
• Free cash flow: negative $2.12 billion, compared with positive $10.63 billion a year earlier
• Headcount: 66,775 at September 30, down 15%

Costs and expenses rose 68% to $51.6 billion, driven in large part by the legal charge. According to market coverage, the charge relates to a multistate settlement over teen mental health litigation.

Class C stock

The board approved a new, publicly listed, non-voting Class C common stock, with the amended certificate of incorporation set to take effect on January 19, 2027. Meta declared a one-time stock dividend of one Class C share for every Class A and Class B share held; record and payment dates will be set later. The company said it expects the Class A share price to reflect the equivalent of a two-for-one split after the dividend, and that the dividend does not change any holder's voting power.

Outlook

• Fourth-quarter revenue: $73 billion to $76 billion
• 2026 total expenses: raised to $175 billion to $179 billion
• 2026 capital expenditures: $135 billion to $145 billion, narrowed from $130 billion to $145 billion
• Reality Labs: losses of $18 billion to $19 billion in 2026, narrowing to about $15 billion in 2027

Meta gave no full-year 2027 revenue outlook but said it expects to sustain strong overall revenue growth throughout the year.

In the release, CEO Mark Zuckerberg said, "We hit major milestones this quarter toward delivering personal superintelligence for everyone."

Context

The negative free cash flow reflects the scale of Meta's AI infrastructure build-out, including projects such as its Ohio supercluster. A non-voting share class gives a company a way to issue equity, for example for acquisitions or employee compensation, without diluting existing voting control. Meta has not described specific plans for the new shares in the release.