Meta Reports 26% Q3 Revenue Growth Driven by AI Contributions

Written by Emily J. Thompson, Senior Investment Analyst

META+0.54%

Source: NASDAQ.COM

Updated: 1h ago

0mins

Source: NASDAQ.COM

Accelerated Revenue Growth: Meta's Q3 revenue increased by 26% year-over-year, up from 22% in Q2, indicating significant improvements in its ad business driven by AI ranking systems, thereby reinforcing its market position.
AI Tool Revenue Surge: The annual revenue run rate for Meta's AI-powered ad tools has surpassed $60 billion, demonstrating that the company's investments in AI are yielding returns and enhancing future profitability potential.
User Engagement Explosion: Meta AI's monthly active users have exceeded 1 billion, reflecting strong demand for AI applications and further boosting Meta's competitiveness in the social media landscape.
Capital Expenditure Plans: Meta plans to exceed $100 billion in capital expenditures in 2026, which may pressure profitability; however, the company still achieved an 18% increase in operating income, showcasing its robust financial foundation.

Analyst Views on META

Wall Street analysts forecast META stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for META is 824.71 USD with a low forecast of 655.15 USD and a high forecast of 1117 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

44 Analyst Rating

37 Buy

6 Hold

1 Sell

Strong Buy

Current: 604.120

Low

655.15

Averages

824.71

High

1117

Current: 604.120

Low

655.15

Averages

824.71

High

1117

BofA

Neutral -> Buy

upgrade

$111 -> $127

Al Analysis

2026-01-21

New

Reason

BofA

Price Target

$111 -> $127

Al Analysis

2026-01-21

New

upgrade

Neutral -> Buy

Reason

As previously reported, BofA upgraded Oklo (OKLO) to Buy from Neutral with a price target of $127, up from $111, following the company's signing of a firm, binding agreement with Meta (META) to develop a phased 1.2 GW advanced nuclear campus. While the MW contribution is "modest," the deal signals a "meaningful step forward" and provides tangible proof of execution and counterparty commitment, the analyst tells investors. Meta's willingness to commit capital years ahead of delivery underscores the importance of nuclear as AI and data center demand accelerate, adds the analyst, who sees Oklo as the most levered public SMR name to data center demand.

UBS

Buy

downgrade

$915 -> $830

2026-01-20

New

Reason

UBS

Price Target

$915 -> $830

2026-01-20

New

downgrade

Buy

Reason

UBS lowered the firm's price target on Meta Platforms to $830 from $915 and keeps a Buy rating on the shares. The Q4 earnings outlook for advertising-driven companies points to slimmer beats after a slow October tied to a government shutdown, followed by a rebound in November and December, the analyst tells investors in a research note. Among nine companies, five exceeded prior forecasts, two were in line, and two came in modestly below expectations, UBS says.

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Guggenheim

Buy

downgrade

$875 -> $800

2026-01-08

Reason

Guggenheim

Price Target

$875 -> $800

2026-01-08

downgrade

Buy

Reason

Guggenheim lowered the firm's price target on Meta Platforms to $800 from $875 and keeps a Buy rating on the shares. The firm's lowered target reflects its assumption of higher investment levels on "relatively unproven projects," but the 2026 outlook for Meta operating trends "remains constructive," the analyst tells investors.

Cantor Fitzgerald

Overweight

maintain

$720 -> $750

2026-01-08

Reason

Cantor Fitzgerald

Price Target

$720 -> $750

2026-01-08

maintain

Overweight

Reason

Cantor Fitzgerald raised the firm's price target on Meta Platforms to $750 from $720 and keeps an Overweight rating on the shares. Despite lingering macro concerns, the outlook for Global Internet stocks into 2026 is increasingly positive as AI enters a "Synergy" phase that should drive accelerating revenue growth, improved value capture, and clearer long-term returns on capex, the analyst tells investors in a research note. With valuations still about 20% below medium-term ranges despite 2025 outperformance, the group is positioned to outperform in 2026 amid positive estimate revisions and improving sentiment, Cantor says.

About META

Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.