Meta Platforms exceeded revenue expectations in its Q3 2026 earnings report, generating $64.60 billion, up 26% from the previous year, and provided strong guidance for Q4, projecting between $73 billion and $76 billion in revenue. CEO Mark Zuckerberg highlighted significant advancements toward "personal superintelligence," including the launches of the Muse AI personal assistant and the newer Muse Wonder model. The success of Muse, which helps users with tasks like shopping and organizing information, contributed to Meta’s best Wall Street month since 2022, with over 10 million users in the U.S. and Canada actively engaging with the AI agents.

Meta’s Reality Labs division, focused on virtual reality and AI-powered wearable devices, continued to post substantial losses, with $4.13 billion lost on $443 million in sales during Q3. Despite this, the unit remains a key strategic area for the company, highlighted by the upcoming release of Meta VR Glasses priced at $1,299 in spring 2027. Meanwhile, Meta’s workforce shrank by 12% to 66,000 employees following layoffs earlier in the year as the company streamlines operations while investing heavily in AI development led by AI chief Alexandr Wang.

The company announced the creation of a new class of non-voting Class C common stock, starting January 2027, effectively a two-for-one stock split designed to finance growth while maintaining Meta's founder-led structure. Zuckerberg has committed to staying in California for at least eight years partly in relation to this new stock plan, despite concerns about potential tax liabilities tied to California Proposition 40. Meta also narrowed its expected full-year capital expenditures to between $135 billion and $145 billion, underlining the importance of investments in data centers and AI infrastructure.

Legal challenges have persisted for Meta, including a $25 billion penalty stemming from a New Mexico data privacy case related to the Cambridge Analytica scandal, marking a continuation of previous reputational and regulatory difficulties. Additionally, Meta settled a $17 billion lawsuit with state attorneys general over alleged harms tied to its social media apps’ impact on child mental health. Despite these costly legal issues, Meta’s core advertising business remains robust, with Q3 ad revenue expected around $61.87 billion, helping anchor the company’s substantial investments in AI and emerging technology.