The Numbers
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $64.601B | $63.34B | ✅ Beat |
| EPS | $7.40 | $5.74 | ✅ Beat by 28.9% |
| Diluted EPS | $3.83 | — | +265% YoY |
| Revenue Growth | +26% YoY | — | Strong |
| Operating Margin | ~20% | 43% (Q3 2024) | ⚠️ Sharp compression |
Note: two EPS figures circulating — $7.40 (adjusted, beating the $5.74 Street estimate by ~29%) and $3.83 diluted GAAP EPS (+265% YoY). Reconciling likely reflects one-time items; headline beat narrative holds either way.
Guidance Update
Management issued a positive outlook for Q4, reinforcing confidence in continued ad-revenue strength heading into the holiday quarter.
What Happened
✅ Positives:
- Revenue beat estimates by nearly $1.3B ($64.6B vs. $63.34B expected)
- EPS beat consensus by ~29%
- Diluted EPS up 265% year-over-year
- Issued upbeat Q4 guidance
⚠️ Concerns:
- Operating margins compressed sharply — from ~43% in Q3 2024 to roughly 20% in Q3 2026 — reflecting heavy AI infrastructure and compute spend
- Margin trajectory will be the key debate point for analysts into Q4
Market Reaction
Shares rose more than 2% in after-hours trading as investors rewarded the top- and bottom-line beat plus the constructive Q4 outlook, looking past the margin compression for now.
Bottom Line
Meta delivered a clean beat-and-raise quarter — the market’s focus on the 26% revenue growth and strong guidance outweighed concerns about halved operating margins, at least in the immediate after-hours reaction.