Meta's board has declared a one-time dividend of one non-voting Class C share for each outstanding Class A and Class B share. The preliminary information statement filed with the SEC says the distribution depends on a restated charter, with a record date and payment date still to be set. The charter amendment is targeted to take effect on January 19, 2027, and the payment date would occur no later than the fifth business day after the restated charter becomes effective.
The move is not a conventional stock split. Class C shares would be publicly traded and non-voting, creating a separate security with a different governance profile. Meta said the new class may be used for capital raising, employee compensation and acquisitions while preserving existing voting control. The company also entered into a Founder Alignment Agreement with Mark Zuckerberg that restricts certain sales of Class C shares.
Meta reported third-quarter revenue of $64.601 billion, up 26% year over year and above analyst expectations of roughly $63.3 billion. Advertising revenue was $63.06 billion. GAAP earnings per share were $3.83, including a $9.89 billion legal charge. Excluding that charge, EPS would have been $7.40. Capital expenditure reached $34.9 billion in the quarter, and Meta narrowed its 2026 capex guidance to $135 billion to $145 billion.
Meta also faced a separate legal setback after a New Mexico judge ordered it to pay a $25 billion penalty in a data privacy case. The $9.89 billion charge relates to a settlement involving US states and teen mental-health litigation, not the New Mexico penalty. The company forecast fourth-quarter revenue between $73 billion and $76 billion, above Wall Street consensus.
Premarket trading showed Meta shares slipping more than 1% despite initial after-hours gains. Analysts remained broadly positive on advertising momentum and AI product integration. JPMorgan raised its price target to $940, Goldman Sachs retained a Buy rating with an $885 target, Evercore ISI raised its target to $870, and Piper Sandler lowered its target to $850 while maintaining an Overweight rating.
