Meta Platforms said its Muse AI models showed lower content-processing costs in offline evaluations as third-quarter revenue rose 26%, while the company reported negative free cash flow of $2.12 billion.
Revenue for the quarter ended Sept. 30, 2026, was $64.60 billion, Meta said, up 26% from a year earlier. Family of Apps advertising revenue reached $63.1 billion, also a 26% increase. Ad impressions rose 10%, and the average price per ad climbed 14%.
Chief Financial Officer Susan Li said Meta had begun moving content-understanding work to its Muse model family. In offline assessments across Instagram, Threads, Facebook and advertising, the models performed better than earlier production systems and had per-unit processing costs more than 80% lower, she said. Meta did not say whether the lower costs measured offline have translated into savings in live operations.
Meta has said its broader AI work supports engagement, recommendations and ad monetization across its products. CEO Mark Zuckerberg said more than 10 million people in the United States and Canada set up Muse personal agents during the product’s first month and a half. He said about one-quarter of those users used an agent on a given day.
Meta has described possible direct revenue from business transaction fees, subscriptions and business services. It has not reported whether, or how much, Muse generates in standalone revenue or profit.
Capital expenditures totaled $34.91 billion in the third quarter, including principal payments on finance leases. Meta’s 2026 forecast is $135 billion to $145 billion on the same basis, up from a prior range of $130 billion to $145 billion. The company said it is still developing its 2027 budget and plans to maintain substantial investment in its established business and AI work, but it has not given a 2027 capital-expenditure range. Meta expects fourth-quarter revenue of $73 billion to $76 billion.
