Meta Posts $64.6 Billion in Third-Quarter Revenue, Beating Wall Street Estimates
Meta reported third-quarter revenues of $64.6 billion, beating analyst estimates by a 26% year-over-year surge, alongside strong fourth-quarter guidance and a new $25 billion fine in New Mexico.
Meta Platforms reported its third-quarter financial results following the close of trading on Wall Street, posting revenues of $64.6 billion. This figure represents a 26% surge compared to the same period last year, outperforming the average analyst consensus of $63.37 billion.
Revenue and Earnings Performance
The parent company of Facebook and Instagram recorded a net income per share of $3.83, driving a 3.6% jump in the company's stock during after-hours trading. Daily active people across Meta's family of apps reached 3.64 billion during the third quarter, slightly below the average analyst expectation of 3.65 billion.
For the upcoming fourth quarter, Meta projected revenues to range between $73 billion and $76 billion. The midpoint of this guidance sits above analysts' estimates of $73.73 billion.
Capital Expenditures and AI Growth
Meta narrowed its full-year capital expenditure forecast for data centers to a range of $135 billion to $145 billion, compared to its previous projection of $130 billion to $145 billion. Analysts had anticipated full-year capital expenditures to hit $138.27 billion.
The early success of the Muse AI personal assistant, launched in September, propelled it to the top of the Apple App Store on iOS, helping make September Meta's strongest month on Wall Street since 2022.
"We reached significant milestones this quarter toward delivering personal artificial intelligence to everyone—including the launch of Muse and Muse Wonder, our first frontier model," said Meta CEO Mark Zuckerberg.
Legal Challenges in New Mexico
Separately, court filings revealed that Meta will pay a $25 billion fine in New Mexico as part of a long-standing privacy lawsuit stemming from the Cambridge Analytica scandal over a decade ago. A Santa Fe jury ruled in September that the tech giant misled citizens regarding data protection, collection practices, and the proliferation of harmful content. Meta announced its intention to appeal the decision.
