Meta Beats Revenue Estimates but Profit Misses; Stock Rises

Meta reported quarterly revenue of $64.601 billion, up 26% year-over-year and beating estimates, though net income of $9.860 billion fell short of consensus forecasts. The company's stock rose in after-hours trading despite the mixed results. Operating income declined 37% to $12.988 billion, while operating costs surged 68% to $51.61 billion, partly due to legal charges. Free cash flow turned negative at $2.12 billion due to heavy capital expenditures of $34.91 billion, though Meta maintains $82.45 billion in liquidity. Meta raised its full-year 2026 expense guidance to $175-179 billion, including a $9.9 billion legal charge, and announced a new class of non-voting shares effective January 2027 to fund AI development. The company forecasts Q4 revenue between $73-76 billion.