# Bank of America predicts Meta’s Q3 AI-driven ad revenue to exceed $63.8B

Digest AI · Business & Funding · published 2026-10-16T08:37:00Z

Canonical: https://digestai.news/story/bank-of-america-predicts-metas-q3-ai-driven-ad-revenue-to-exceed-63-8b

## Summary

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.

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.

## 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**

## Why it matters

Meta’s ad-driven revenue growth hinges on AI adoption, with investors watching whether AI tools like Muse and LLMs translate into measurable gains. Higher capex for infrastructure could pressure margins, but AI’s long-term potential remains a key valuation driver.

## Sources

1. [Meta expected to beat revenue forecasts as AI boosts advertising, says Bank of America](https://finance.yahoo.com/technology/ai/articles/meta-expected-beat-revenue-forecasts-153700114.html) (finance.yahoo.com, 2026-10-16)

## Cite

Digest AI, "Bank of America predicts Meta’s Q3 AI-driven ad revenue to exceed $63.8B", 16 October 2026, https://digestai.news/story/bank-of-america-predicts-metas-q3-ai-driven-ad-revenue-to-exceed-63-8b

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