Meta heads into earnings with Muse revenue ambitions and rising spending

Meta is scheduled to release third-quarter results on October 21, following the launch of its Muse personal AI agent. The update comes as the company pursues paid AI services alongside a substantial expansion of capital spending.

Introduced on September 8, Muse can carry out tasks such as arranging travel and preparing emails, Meta said. It operates through a dedicated cloud computer and requests approval before sensitive actions. Meta offers free access for many uses and subscriptions for additional capabilities.

The financial backdrop shows why new revenue sources matter. Meta's second-quarter revenue increased 28% to $60.8 billion, while costs and expenses rose 55% to $42 billion. Its operating margin declined to 31% from 43% a year earlier, and free cash flow totaled $784 million.

Meta subsequently announced an enterprise platform that includes Muse and other AI tools for businesses and developers. Zuckerberg named Chirantan Desai to lead the initiative, extending the company's commercial AI effort beyond its consumer assistant.

Meta's July outlook projected third-quarter revenue between $61 billion and $64 billion and full-year capital expenditures of $130 billion to $145 billion. Those figures remain forecasts rather than reported third-quarter results. The company scheduled its earnings discussion for 4:30 p.m. Eastern on October 21.