Q3 Earnings

Meta’s Q3 earnings beat expectations with $7.25 EPS and $51.24 billion revenue, driven by strong ad sales and user growth. However, shares dipped due to a $15.93 billion tax charge related to new legislation. The company anticipates long-term tax benefits from this. Meta projects Q4 revenue between $56-59 billion but increased its full-year expense guidance to $116-118 billion, reflecting AI infrastructure investments. Reality Labs reported a $4.4 billion loss. The company highlighted the success of AI-powered glasses and increasing AI adoption.

Samsung Electronics reported a strong Q3 rebound driven by surging demand for memory chips used in AI applications. Operating profit increased 32.9% year-over-year, exceeding analyst expectations. The chip business saw a tenfold increase in operating profit compared to the previous quarter. Samsung regained its position as the leading memory market player and anticipates continued growth in AI chip demand, focusing on mass production of HBM4 in 2026. The Mobile eXperience division also demonstrated positive growth fueled by flagship smartphone sales.

Meta (META) shares were volatile after Q3 results, despite exceeding revenue expectations with a 26% YoY increase to $51.24B. While EPS beat estimates, a $16B tax charge and increased capex guidance for AI investments in 2026 concerned investors. Meta emphasized the strategic importance of AI for advertising and future opportunities, citing strong user engagement and monetization. Q4 revenue is projected at $56B-$59B, with increased spending expected.