Meta Platforms (NASDAQ: META) is set to report third-quarter 2026 earnings after the US market closes on Wednesday, October 21. Wall Street expects revenue of about $63.4 billion, with investors focused on advertising growth, spending on artificial intelligence infrastructure and whether the company’s new Muse AI assistant can create additional revenue.
Meta’s earnings report arrives as investors demand clearer evidence that Big Tech’s enormous AI investments will produce lasting returns. The company’s second-quarter results showed revenue rising 28% year over year to $60.8 billion, while operating income fell 8% to $18.8 billion as expenses increased.
For the September quarter, analysts tracked by Visible Alpha expect Meta to generate $63.42 billion in revenue, a 23.8% increase from a year earlier. Net income is projected to decline about 17% to $15.44 billion, according to Reuters’ earnings preview.
The company previously guided for quarterly revenue between $61 billion and $64 billion. That places Wall Street’s current estimate near the upper end of management’s range, leaving investors looking for evidence that demand for digital advertising remains strong.
The results are expected to influence sentiment toward AI-related stocks more broadly. As outlined in Wealthier Today’s coverage of the earnings test facing major AI stocks, investors are increasingly judging technology companies on whether their spending can generate measurable financial returns.
What Analysts Expect From Meta’s Q3 Earnings
Advertising remains Meta’s principal revenue engine. Facebook and Instagram use AI to improve content recommendations and help advertisers reach potential customers. Investors will examine whether these improvements are supporting higher advertising prices and engagement across the company’s platforms.
Analysts are looking for revenue of around $63.3 billion to $64 billion. Bank of America analyst Justin Post believes expectations could be too conservative and sees approximately $64 billion as a more realistic benchmark for the quarter. The bank maintained a Buy rating and an $810 price target, Business Insider reported.
Other analysts remain bullish but have different expectations for the company’s earnings and valuation. JPMorgan maintained an Overweight rating with a $920 target, while Wells Fargo set a $1,000 target and highlighted the potential of Meta’s AI products. RBC Capital Markets’ $770 target reflects a more restrained valuation outlook.
These targets are analysts’ estimates, not guarantees of future share prices. Their differences also show that investors can agree on Meta’s growth prospects while holding different views on how much its shares are worth.
Reported earnings per share could be harder to interpret than revenue. Analysts have published different estimates depending on their treatment of an approximately $10 billion potential legal expense connected with litigation involving the effects of social media on children. Business Insider cited a range of $5.60 to $6.58 per share, while other forecasts that account for the legal cost have been considerably lower. Investors will need to distinguish the impact of any legal charge from the company’s underlying operating performance.
The reaction to the report may also depend on how Meta’s results compare with expectations that have risen alongside optimism about AI. A revenue beat alone may not satisfy investors if management signals weaker margins or more spending than expected.
AI Spending and Muse Will Be Key to Meta Stock’s Reaction
Meta’s capital expenditure plans remain one of the biggest issues for shareholders. The company expects to spend between $130 billion and $145 billion in 2026, including principal payments on finance leases, as it expands its computing infrastructure and develops AI products.
Analysts expect capital expenditure to reach approximately $41.68 billion in the third quarter, more than double the level a year earlier. Reuters also reported that analysts expect Meta to use more cash than it generates after capital spending during the period, reflecting the scale of its infrastructure program.
The central question is whether those investments can support enough future growth to justify their cost. Higher spending may help Meta improve ad targeting, recommendations and AI capabilities, but it can also weigh on cash flow and profitability before the benefits are fully realized.
The launch of Muse has given investors a new way to assess the company’s AI strategy. The assistant debuted in September and quickly attracted attention, helping drive a rally in Meta shares.
Wall Street now wants evidence that user interest can turn into sustainable revenue. Investors will look for details on subscriptions, business adoption and the potential for AI agents to generate sales beyond Meta’s traditional advertising model. The company’s expansion of Muse tools for small businesses is one example of how it is trying to extend AI across commercial services.
Management’s outlook for the final quarter and 2027 could be just as important as the September results. Any change in capital expenditure guidance would offer clues about the pace of Meta’s AI buildout, while comments on demand and monetization could influence analyst estimates for future earnings.
The wider market is watching closely because Meta is among the first major technology companies to report earnings this week. Its results may help investors judge whether the recent AI rally is supported by revenue growth and cash generation, or whether rising infrastructure costs are beginning to put pressure on returns.
For META stock, the likely reaction will depend on more than whether Meta beats consensus. Strong advertising demand, credible signs of AI monetization and disciplined spending could support investor confidence. Disappointing revenue, weaker profitability or a higher spending outlook could have the opposite effect. The earnings report will provide new information, but it will not settle the longer-term question of how quickly Meta’s AI investments can pay off.