Meta Platforms is drawing bullish analyst views ahead of third-quarter earnings on Wednesday, reflecting opportunities in artificial intelligence, advertising and the company's new Muse AI agent. Meta is scheduled to release third-quarter 2026 financial results after the market closes on Oct. 21. Analysts expect earnings of $5.89 per share, down from $7.25 a year earlier. Analysts project revenue of $63.36 billion, up from $51.24 billion in the year-ago quarter.
Rosenblatt Securities analyst Barton Crockett maintained a Buy rating and an $886 price forecast, citing advertising momentum and potential AI-driven growth. Crockett said Meta's decision to report a week earlier than usual, without preliminary results, suggests management is confident about performance. Crockett expects third-quarter revenue growth near the upper end of Meta's 19% to 25% guidance range. Crockett expects AI-driven improvements in advertising engagement and effectiveness to support that growth. Rosenblatt projects third-quarter revenue of $63.94 billion, above the $63.36 billion consensus estimate. Rosenblatt estimates adjusted earnings of $6.95 per share.
However, Crockett expects Meta's substantial AI investments to pressure free cash flow. Crockett forecasts capital spending of $130 billion to $145 billion in 2026. Crockett considers a potential increase toward $200 billion in 2027 reasonable. Despite those costs, Crockett believes improvements in Meta's core advertising business can justify the AI investments. Crockett sees Muse as a source of additional long-term upside.
Citizens JMP Securities analyst Andrew Boone maintained a Market Outperform rating and an $885 price forecast, highlighting Muse's potential to transform consumer AI. Boone expects consumer AI agents to surpass 100 million daily active users by the end of 2027. Boone believes Meta is positioned to capture a meaningful share of that market. Boone estimates Muse could generate more than $10 billion in annual advertising revenue with 100 million daily users. Boone has not included that potential revenue in current financial projections.
Boone believes advertising offers a stronger business model than subscriptions for AI agents as the agents increasingly help consumers complete tasks, discover products and make purchasing decisions. Boone sees an opportunity for Meta to gain users while OpenAI faces computing constraints. Boone also sees an opportunity while Alphabet's Google balances AI innovation against risks to Google's existing search advertising business. However, Rosenblatt cautioned that Muse's rapid initial adoption could eventually slow, creating potential stock volatility. Rosenblatt does not expect meaningful Muse monetization for at least another year.
Meta faces the challenge of converting rising infrastructure spending into sustainable revenue growth. Meta shares were down 1.96% at $691.60 at the time of publication on Tuesday, according to Benzinga Pro data.
Meta to Report Q3 2026 Earnings Amid AI Expansion and Revenue Growth Projections
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Summary
Meta Platforms will report Q3 2026 earnings on October 21, with analysts forecasting $5.89 per share and $63.36 billion in revenue. AI-driven growth and ad momentum are key factors. Rosenblatt’s Barton Crockett expects 2026 capex of $130–145 billion, noting AI investments may pressure free cash flow. Citizens JMP’s Andrew Boone sees Meta’s Muse AI agent hitting 100 million daily users by 2027, potentially generating over $10 billion in ad revenue. The AI + crypto news landscape shows signs of ecosystem growth.
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