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Meta earnings live updates: AI spending, ad revenue and stock reaction

Wednesday 21 October17:00 · 1h agoAI summary
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Meta reports Q3 2026 earnings after the bell Wednesday, with focus on AI spending, ad revenue, and a $10 billion legal charge from a child safety settlement.

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01Summary

  1. 01Meta's Muse AI assistant debuted in September and reached the top of Apple's iOS app store.
  2. 02The company's 2026 capex guidance is $130-145 billion, up $5 billion at the low end from the prior range.
  3. 03Free cash flow fell to $784 million from $8.55 billion a year earlier due to AI infrastructure spending.
  4. 04Meta agreed in August to pay nearly $17 billion to settle a lawsuit over child mental health harms.
  5. 05Analysts expect a $10 billion legal charge to hit Q3 earnings per share, which has not been factored into estimates.

02Why it matters

Meta's heavy investment in AI and a massive legal settlement could pressure its near-term profits, affecting its stock performance and signalling the cost of expanding AI infrastructure.

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Answers are generated by AI from the story summary; they are not investment, health or legal advice.

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