"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."
"Menlo Park, California-based Meta Platforms Inc. earned $2.71 billion (€2.33bn), or $1.05 per share, in the July-September period. Excluding tax-related special expenses, the company would have earned $7.25. Revenue rose 26% to $51.42bn (€44.29bn) from $40.59bn (€34.96bn). Analysts, on average, were expecting earnings of $6.72 per share on revenue of $49.51bn (€42.64bn), according to analysts surveyed by FactSet Research. Meta's daily active user base on its apps - Facebook, Messenger, WhatsApp, Instagram and Threads - was 3.54 billion on average for September, up 8% year-over-year."
Meta reported strong third-quarter results with revenue up 26% to $51.42 billion and GAAP earnings of $2.71 billion. Excluding tax-related special expenses, adjusted earnings would have been $7.25 per share versus analysts' expectations of $6.72. Daily active users across Meta apps averaged 3.54 billion in September, an 8% year-over-year increase. Meta warned that 2026 expenses will rise significantly, led by infrastructure spending and higher employee compensation as AI talent hired in 2025 becomes a full-year cost. The company forecasted fourth-quarter revenue between $56 billion and $59 billion, while analysts remain broadly optimistic about AI-driven growth.
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