Bank of America predicts Meta’s Q3 AI-driven ad revenue to exceed $63.8B
Bank of America forecasts Meta’s third-quarter revenue will hit $63.8 billion, surpassing the $63.3 billion consensus estimate, driven by AI’s role in boosting advertising. The bank expects earnings per share of $3.79, below the $6.08 consensus, due to a $10 billion one-off legal settlement charge. Despite this, operating income is projected to exceed expectations when excluding the charge.
Key points
- Bank of America forecasts Meta’s Q3 revenue at **$63.8 billion**, above the **$63.3 billion** consensus estimate
- Earnings per share expected at **$3.79**, below consensus of **$6.08**, due to a **$10B** legal settlement charge
- Meta’s Q4 revenue guidance ranges from **$71.5B–$74.5B**, with **2026 capex** projected at **$140B–$145B**
For the fourth quarter, Bank of America anticipates revenue of $74.1 billion and earnings per share of $8.74, above the $73.6 billion and $8.18 consensus estimates. Meta’s guidance for Q4 revenue ranges from $71.5 billion to $74.5 billion, reflecting a 19% to 24% annual growth rate, down from the 25% seen in Q3. The bank also predicts Meta’s 2026 capital expenditure will narrow to $140 billion–$145 billion, with a $205 billion estimate for 2027, underscoring AI infrastructure investments. Investors will scrutinize AI’s impact on ad performance and efficiency during Meta’s upcoming earnings call on October 21.
Meta expected to beat revenue forecasts as AI boosts advertising, says Bank of America
finance.yahoo.com · 16 October 2026
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