Meta (META) Q3 2026 earnings report: Live updates

Analysts at Bank of America wrote in a note published Friday that they expect Meta to post a sales beat, with revenue of $63.8 billion, based in part on the firm’s “solid ad checks” with brands and companies that helps determine the health of the digital ad market.

The analysts don’t expect Muse to contribute significantly to Meta’s overall business for the rest of this year and 2027 and instead “will consume capacity w/o near-term revs.,” meaning that the company’s AI agent efforts will take some time to grow into something bigger.

Morgan Stanley analysts agree that Meta’s Muse AI agent initiatives won’t generate big sales anytime soon, and while they said in a Sunday research note that they are “bullish,” they “encourage investors to keep reasonable adoption rates in perspective.”

The analysts explained that it takes a long time for new technology habits and behaviors to normalize. In 2000, when the e-commerce boom was just five years deep, for instance, the analysts noted that online retail “only made up 4% of adj retail sales” while adding that “even ~30 years in (’26) it’s still only 28%.”

— Jonathan Vanian

Meta will be the first hyperscaler to reveal quarterly financials during this tech earnings cycle, with Alphabet, Microsoft and Amazon slated to report next week.

The four companies combined have called for roughly $730 billion in capital expenditures this year as they stock up on graphics processing units and AI systems and look to build massive data centers around the globe.

Analysts polled by FactSet expect that number to hit around $1 trillion next year, led by Alphabet, which is projected to spend over $310 billion. The stepped up spending comes as interest rates soar and concerns intensify that AI revenue won’t justify the costs.

Alphabet and Microsoft are scheduled to report earnings next Wednesday, followed by Amazon on Thursday.

— Jonathan Vanian

Meta’s past quarter wasn’t all AI agents and good vibes.

The social media giant agreed in August to pay nearly $17 billion to settle a major lawsuit involving a group of state attorneys general, including California’s Rob Bonta. The trial centered around allegations that Meta misled the public about the true scope of child mental health related harms caused by certain design elements of apps like Facebook and Instagram, including recommendation algorithms.

Meta’s state AG settlement could cause the company to miss on third-quarter earnings per share due to the related $10 billion legal charge that “the street has not yet accounted for,” Wolfe Research analysts wrote in a Monday note.

The company still faces numerous personal injury claims and a separate federal case involving a group of nationwide school districts that also focus on allegations that apps like Instagram have had detrimental effects on the well being of children.

— Jonathan Vanian