"Meta's stock slid in after-hours trading on Wednesday after the tech giant posted strong third-quarter results but warned that its expenses will be significantly higher in 2026 than this year. Like its rivals, Meta Platforms Inc. has been on an artificial intelligence spending spree and said its costs will grow much faster next year, driven by infrastructure costs and employee compensation as it has hired AI experts at eye-popping compensation levels."
""For Meta, advertising is the foundation; AI is the growth engine," said Debra Aho Williamson, founder and chief analyst at Sonata Insights. "There's a lot of focus on Meta's capital expenditures related to AI, which is completely warranted. The spending is absolutely massive. But with 26% growth in revenue in Q3, it's clear that what Meta is doing to integrate AI into its ad products is working.""
Meta Platforms posted strong third-quarter results with revenue rising 26% to $51.42 billion and GAAP net income of $2.71 billion ($1.05 per share). Excluding tax-related special items, adjusted earnings were $7.25 per share versus analysts' $6.72 expectation on $49.51 billion. Daily active users averaged 3.54 billion in September, up 8% year-over-year. The company forecasted fourth-quarter revenue of $56–$59 billion. Expenses are expected to climb significantly in 2026, driven by AI-related infrastructure and elevated employee compensation from hiring high-paid AI talent. Analysts noted advertising remains the revenue foundation while AI serves as the growth engine.
Read at San Diego Union-Tribune
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