Meta earnings live: Meta beats Q3 revenue expectations, announces 2-for-1 stock split

It was more than a year ago that … I wrote the letter of personal superintelligence as the North Star for the work that we’re doing here.

The most important thing that we can build for this next generation of technology is basically putting this technology in everyone’s hands, which is the personal superintelligence vision …

These are long-term bets. I feel like this is what we’re here to do: make long-term technology bets and design the best experiences end to end that we can for billions of people around the world.

And I think as long as we continue to do that, then over time the business takes care of itself.

Ads business has been benefiting for many years from ongoing investments in traditional AI machine learning models and continues to improve thanks to the more recent generation of models.

Meta CFO Susan Li says that the company is poised to take on the enterprise market thanks to AI.

“AI is creating huge amounts of disruption in enterprise today. We really don’t believe that traditional enterprise companies have this locked down.

Some of the leading companies in this space today didn’t exist a few years ago. Those companies made large investments in model development and we’ve done the same, and we have increasingly competitive models to bring to bear.

We expect that this will be an opportunity that will develop over mutlple years and we intend to scale our investment behind demonstrated customer demand and product market fit in this area.”

Meta says that its enterprise offerings via its Muse AP, Muse code, and business agents are growing quickly.

Meta’s Muse AI agent is one of the most talked-about topics on the company’s earnings call.

CEO Mark Zuckerberg says 10 million people in the US and Canada have set up the app.

The company is working to optimize compute efficiency to roll it out globally, and expects to eventually have more than one billion people on the service.

Meta’s Mark Zuckerberg will stay in California as part of the company’s Class C stock agreement and to remain close to the company’s Meta Superintelligence Labs.

Initial reports indicated he could leave if Proposition 40 passes in the state. The measure, which is on the November ballot, calls for a 5% tax on taxpayers with assets over $1 billion.

Meta CFO Susan Li told investors that the company’s use of predictive AI models is helping it better understand users and deliver ad experiences more closely aligned with their unique preferences.

Meta CFO Susan Li said global time spent per user on Instagram increased to an all-time high in Q3.

Facebook’s Reels also reached an all-time high in both the US and globally, and time spent on Threads increased by 20% year over year.

Zuckerberg says Meta’s Reality Labs losses will decline as it seeks to pace the release of virtual reality headsets in favor of focusing on personal superintelligence.

“We expect P&L of Reality Labs to improve from here, with operating loss coming down to around $15 billion next year, and trending toward profitability from there,” he said.

Meta’s Mark Zuckerberg says that the company believes that its Muse AI agent will become the most important part of its smart glasses strategy.

Meta CEO Mark Zuckerberg says that Meta expects Muse compute cost efficiency to improve by 10x in the next year.

“If compute efficiency continues to improve quickly for another few years, which we think is highly likely, then Muse will be highly profitable over multiple years.”

Meta CEO Mark Zuckerberg says Meta expects Muse to serve billions of people.

While average revenue per American user for existing family of apps users is several hundreds of dollars, he says he expects Muse to be higher.

The most common use case for Muse is shopping. The average purchase size is over $200.

Plaid told Meta that it hadn’t seen activity like it had seen using Muse’s connector.

Outside of shopping, personal productivity and connecting Muse to other services are the leading use cases.

Meta CEO Mark Zuckerberg took a shot at Elon Musk’s X during the company’s third quarter earnings call, saying that Meta’s Threads platform has overtaken X in terms of monthly active users.

Meta narrowed the range of its full-year 2026 capital expenditures, raising the lower end of its projections.

The company now expects to spend between $135 billion and $145 billion from between $130 billion and $145 billion.

Meta CEO Mark Zuckerberg says he may move out of California if the state’s Proposition 40 passes.

The measure, which seeks to impose a 5% tax on taxpayers with assets over $1 billion, will be on the state’s Nov. 3 ballot.

In addition to all-time-high revenue, Meta said it’s creating a new class of non-voting stock.

The Class C shares will be distributed to existing stockholders and begin trading in late January 2027.

The structure is designed to allow Meta to raise capital for its continued AI build-out, while ensuring CEO Mark Zuckerberg retains control of the company.

Meta stock rose following its Q3 results, rising more than 3% after the company reported all-time revenue results.

GAAP earnings per share took a hit due to Meta’s teen mental health settlement, coming in at $3.83. It would have been $7.40 without the fee.

“This ruling, and the Attorney General’s approach to this enforcement, makes it all but impossible to do business in the state of New Mexico,” C.J. Mahoney, Meta’s chief legal officer, said in a statement.

“At its core, this lawsuit seeks to impose a tax on speech to enforce new rules for what people can say online. We are confident we will prevail on appeal. In the meantime, Meta will continue to build a safe and free platform to connect millions of Americans, grow small businesses, and help the country maintain its competitive edge.”

Meta’s Muse has amassed 10.9 million downloads since its launch on Sept. 8, according to newly released data from Sensor Tower. Muse has received more than 10.2 million downloads from the US alone. In contrast, US downloads for OpenAI’s (OPAI.PVT) ChatGPT in the past 30 days have declined by 25% over the prior 30-day period.

Sensor Tower estimated that Muse reached 2.5 million daily active users (DAUs) for the first time on Oct. 16, as DAUs increased 15% week over week for the past seven days. Read more.