California [US], October 22 (ANI): Meta Platforms reported a 26 per cent year-on-year increase in third-quarter revenue to USD 64.60 billion, while net income surged 264 per cent to USD 9.86 billion, supported by growth in its advertising business, even as a major legal charge weighed on operating income.

The company's revenue for the quarter ended September 30, 2026, rose from USD 51.24 billion in the year-ago period. Net income increased from USD 2.71 billion, while diluted earnings per share climbed to USD 3.83 from USD 1.05.

Advertising revenue, Meta's main source of income, grew 26 per cent to USD 63.06 billion. Ad impressions across its family of applications increased 10 per cent year-on-year, while the average price per advertisement rose 14 per cent.

However, operating income fell 37 per cent to USD 12.99 billion from USD 20.54 billion a year earlier, as total costs and expenses increased 68 per cent to USD 51.61 billion. These expenses included a USD 9.89 billion charge related to an agreement with 52 US state attorneys general to resolve litigation concerning teen mental health and social media.

Meta said operating income would have reached USD 22.88 billion without the legal charge, while diluted earnings per share would have been USD 7.40 instead of USD 3.83.

Looking ahead, Meta expects fourth-quarter revenue of USD 73 billion to USD 76 billion. It has raised its full-year 2026 expense outlook to USD 175-179 billion, incorporating the legal charge.

The company has also raised its 2026 capital expenditure outlook to USD 135-145 billion from its earlier range of USD 130-145 billion, as it continues to invest in artificial intelligence (AI) infrastructure and other business priorities.

In the chief financial officer's outlook commentary, Meta said, "Our AI investments are already delivering substantial incremental advertising revenue through stronger engagement, better recommendations, and more efficient monetization."

The company added that its investments in AI models and infrastructure were creating new revenue opportunities, although these investments would take longer to generate returns than its core business.

"While these investments will take longer to generate returns than those in our core business, the breadth of monetization opportunities and internal efficiencies gives us confidence in their long-term potential," the commentary said.

Meta expects the benefits of its AI investments, alongside advances in its models and new product launches, to support strong overall revenue growth through 2027, even as it continues to develop its budget and capacity plans for next year. (ANI)