Meta Platforms' net income more than tripled in the third quarter of 2026, rising 264 per cent year-on-year to $9.86 billion, as higher advertising revenue boosted its financial performance.

However, a $9.89 billion legal charge pushed operating income down 37 per cent despite a 26 per cent increase in overall revenue.The company's revenue reached $64.60 billion in the quarter ended September 30, compared with $51.24 billion in the same period last year. Net income stood at $2.71 billion a year earlier, while diluted earnings per share rose to $3.83 from $1.05.Advertising remained the biggest contributor to Meta's revenue, bringing in $63.06 billion, up 26 per cent from a year ago.

The number of ad impressions across its family of applications increased 10 per cent, while the average price per advertisement rose 14 per cent year-on-year.Despite the increase in revenue and net income, operating income dropped to $12.99 billion from $20.54 billion in the year-ago quarter. Total costs and expenses climbed 68 per cent to $51.61 billion, reflecting, among other expenses, a $9.89 billion charge tied to an agreement with 52 US state attorneys general to resolve litigation concerning teen mental health and social media.

Meta said that excluding this charge, operating income would have been $22.88 billion. Diluted earnings per share would have reached $7.40, rather than the reported $3.83.

Higher spending planned for AI infrastructure

Meta expects revenue in the fourth quarter to be between $73 billion and $76 billion. It has also revised its full-year 2026 expense outlook upwards to $175-179 billion, taking the legal charge into account.The company has increased its capital expenditure forecast for 2026 to $135-145 billion, from the previous range of $130-145 billion.

The spending is part of its continued investment 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 said its spending on AI models and infrastructure was opening up additional revenue opportunities.

However, it expects these investments to 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 its AI investments, improvements in its models and new product launches to support strong overall revenue growth through 2027.The company is still working on its budget and capacity plans for next year as it continues to invest in AI infrastructure and pursue the revenue opportunities it expects these investments to create.