Meta Q3 Revenue Hits $64.6 Billion as AI Spending Squeezes Cash

Meta Platforms reported September-quarter revenue of $64.6 billion, up about 26% from $51.2 billion a year earlier and above market estimates, according to Economic Times Markets’ October 22 report. Advertising drove the increase, but spending on artificial intelligence infrastructure pushed free cash flow into negative territory.

The report, which cites Yahoo Finance, Reuters and The Wall Street Journal, also describes a board-approved non-voting share class and a fourth-quarter revenue forecast of $73 billion to $76 billion. These figures and announcements are attributed to that reporting and have not been independently verified by BharatVox.

Advertising grows, while investment overtakes cash generation

Advertising revenue reached approximately $63.1 billion, accounting for most of Meta’s quarterly sales and reflecting the continued contribution of Facebook and Instagram. The report says total revenue exceeded expectations, although it does not give the consensus estimate or the size of the beat.

Capital expenditure was about $34.9 billion, against $32.8 billion in cash generated from operating activities. That left free cash flow at roughly negative $2.1 billion as Meta expanded its AI infrastructure.

The distinction matters: rising sales do not necessarily translate into cash remaining after capital investment. The reported figures show that quarterly operating cash generation did not cover capital expenditure; they do not, by themselves, establish an accounting loss.

Muse adoption becomes a test of AI investment

Meta is positioning its Muse AI agent as a central part of its strategy. The product attracted more than 10 million users in the United States and Canada during its first six weeks, according to the report.

That adoption figure provides an early measure of reach, not a measure of revenue or investment returns. The report does not quantify Muse’s revenue contribution, leaving open how quickly the product could help finance Meta’s expanding AI commitments.

Non-voting shares would preserve Zuckerberg’s control

Meta’s board approved a new class of publicly traded Class C common stock carrying no voting rights. The stated purpose is to give the company more flexibility to finance investments and acquisitions and compensate employees while preserving Mark Zuckerberg’s voting control.

Under the announced arrangement, eligible shareholders are expected to receive one Class C share for each existing Class A or Class B share. The distribution is expected to produce an effect comparable to a two-for-one split in the market price of Class A shares, without changing shareholders’ voting power.

The proposal therefore separates additional shares from additional voting rights. The report does not specify a distribution date.

Holiday-quarter outlook points to further sales growth

Meta forecast fourth-quarter revenue of $73 billion to $76 billion as it heads into the holiday advertising season. That range is management’s outlook, not a realised result.

The report identifies rising costs and legal expenses as risks to profitability. Its central financial tension is the gap between a growing advertising business and the cash required for AI expansion, with new-product revenue still an important unanswered question.