Meta's ad revenue grows 26% as a $9.89bn settlement charge hits profit.
Meta's revenue rose 26% to $64.6bn in the third quarter of 2026, almost all of it from advertising. Profit fell sharply because the quarter carried a $9.89bn charge for its settlement with US states over teen mental health.
Meta reported the results on 21 October. Advertising revenue was $63.06bn, up from $50.08bn a year earlier. Ad impressions across its apps rose 10% and the average price per ad rose 14%. Daily active people across the family of apps averaged 3.64 billion in September, up 3%. The charge relates to an August agreement with 52 attorneys general, which provides for payments of up to about $18.59bn. It cut operating income to $12.99bn, down 37%; without it, Meta says, operating income would have been $22.88bn. Net income was $9.86bn.
On the earnings call, finance chief Susan Li said partnership ads, where advertisers run ads with creators and other businesses, grew more than 97% year on year and passed a $15bn annual run rate, according to PPC Land's report of the call. Meta also said nearly 10 million advertisers used at least one of its generative AI creative tools in the quarter, and more than 10 million people in the US and Canada have set up its Muse personal agent. It plans to charge businesses a fee on sales that Muse helps complete.
Spending keeps climbing. Capital expenditure was $34.91bn in the quarter, free cash flow was negative $2.12bn, and Meta narrowed its 2026 capex outlook to $135–145bn. It expects fourth-quarter revenue of $73–76bn. Headcount fell 15% to 66,775. Meta is also creating a non-voting Class C share, effective January 2027. How Muse's transaction fees will work has not been explained.
For Gulf advertisers, the numbers say Meta is getting more money per ad rather than simply showing more ads, so expect auction prices to stay firm into the fourth quarter and Ramadan planning. The growth of creator partnership ads also supports moving more budget into creator-led formats in the region.
لماذا يهمّك
Meta is charging more per ad and growing creator partnership ads fast, which points to firmer costs and more creator-led buying for Gulf advertisers.
أخبار رائجة ذات صلة.
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