Bank of America Had Forecast Meta Revenue at $63.8 Billion Before Q3

Before Meta’s Oct. 21 third-quarter report, Bank of America estimated revenue at $63.8 billion, above a $63.3 billion consensus, as investors weighed whether AI monetization could catch up with capital spending in the second half of 2027.

The estimate was supported by advertising market channel checks showing healthy growth. The larger question was whether Meta’s AI products could develop into revenue as the company and other technology firms continued investing in computing capacity.

Bank of America estimated that a one-time $10 billion charge related to a settlement with state attorneys general in youth-protection litigation would bring Meta’s GAAP operating income to $11.5 billion. That compared with the $18.6 billion consensus estimate. The bank projected earnings per share of $3.79, versus a $6.08 consensus.

Excluding the charge, Bank of America expected Meta’s earnings to exceed consensus. The distinction mattered because the settlement-related expense was expected to weigh heavily on the quarter’s reported profit figures.

The spending debate extended beyond Meta. Bank of America equity strategist Savita Subramanian put technology companies’ capital spending growth at about 50% in 2026, compared with revenue growth of about 20%. Market assumptions depended on AI-related revenue catching up with capital spending in the second half of 2027.

Bank of America identified further increases in 2027 capital spending or operating expenses, and slower-than-expected AI monetization, as potential concerns for investors. Muse and other AI products were expected to consume substantial computing resources before generating direct revenue.

Expected earnings-call topics included Muse adoption and token costs per user, enterprise AI, and Meta’s language-model and infrastructure plans. Analysts did not expect formal 2027 capital spending guidance, though management might have offered a qualitative framework.