Meta posted third-quarter 2026 results showing revenue up 26% from a year earlier, according to the company's investor slides. But margins compressed sharply over the same period, the slides showed, as the company continues pouring money into AI infrastructure.
The split outcome puts investors in a bind. Top-line growth of that size would normally be celebrated outright, but the margin squeeze raises the question of how long Meta can keep spending at this pace before profitability recovers. Goldman Sachs raised its price target on Meta to $860, citing AI momentum, suggesting at least one major bank believes the spending will pay off.
What remains unresolved is the timeline. Meta has not said when margin compression will ease, leaving the stock's near-term direction dependent on how investors read the next few quarters of AI capital expenditure.