Meta Platforms delivered a standout third-quarter performance, with revenue climbing 26% year-over-year to $51.2 billion, driven by a 14% increase in ad impressions and a 10% rise in average ad prices. Daily active users across the company’s apps expanded 8% to 3.54 billion, underscoring sustained engagement on Facebook, Instagram and WhatsApp. Operating income reached $20.5 billion, although it grew more slowly than revenue—up 18%—reflecting stepped-up investment in AI infrastructure and content moderation.

Meta’s capital expenditures surged to $19.4 billion in Q3, part of a full-year plan of $70–72 billion focused on data centers and AI compute. While elevated spending compressed free cash flow to $10.6 billion—down from $15.5 billion a year earlier—and trimmed operating margins to 40%, management reiterated that these investments will power next-generation AI features across its social platforms. Analysts note the trade-off between near-term margin pressure and potential long-term gains from proprietary AI models and targeted advertising innovations.

Citing parental feedback and the need for enhanced safety controls, Meta announced it will pause teenage access to AI-driven chat characters across all apps worldwide in the coming weeks. The company plans to introduce revamped AI personas with built-in parental controls and age-appropriate topic filters covering education, sports and hobbies. This move follows earlier roll-outs of PG-13 style safeguards and reflects heightened regulatory scrutiny over youth interactions with generative AI.