Meta has announced plans to create a new class of non-voting shares to raise capital for its artificial intelligence investments while preserving existing shareholders’ voting rights. The announcement came alongside the company’s third-quarter 2026 earnings, which showed revenue increasing 26% to $64.6 billion despite a sharp rise in operating expenses.
The new Class C common stock is scheduled to become effective in January 2027 and will be distributed to existing shareholders through a stock dividend. Meta said the shares could be used for fundraising, employee compensation, acquisitions, and other corporate purposes without changing its current voting structure.
Meta Creates Non-Voting Shares to Support AI Investments
Meta’s board has approved a new publicly traded Class C stock that will carry no voting rights. Existing Class A and Class B shareholders will receive one Class C share for every share they own, with the distribution dates to be announced later.
Chief Financial Officer Susan Li said the structure would allow Meta to raise additional capital while maintaining its founder-led management model. The company also expects the distribution to have an effect similar to a two-for-one stock split on its existing Class A shares.
According to Meta’s regulatory filing, the new stock could support future financing arrangements, including investments from sovereign financial institutions. The company said establishing a liquid market for Class C shares would help reduce potential pricing discounts when issuing additional stock.
Meta Reports $64.6 Billion in Quarterly Revenue
Meta generated $64.6 billion in revenue during the third quarter, compared with $51.2 billion a year earlier. Total costs and expenses increased 68% to $51.6 billion, while operating income declined 37% to approximately $13 billion.
The company reported $9.86 billion in net income, compared with $2.71 billion in the same quarter last year. Its quarterly expenses included a $9.89 billion charge related to legal proceedings involving youth safety and social media.
Meta also continues to invest in Reality Labs, which develops augmented reality glasses, virtual reality headsets, and related technologies. The company expects the division’s annual losses to narrow to approximately $15 billion in 2027.
Muse AI Surpasses 10 Million Users as Meta Expands Its Models
CEO Mark Zuckerberg said more than 10 million people in the United States and Canada had activated Meta’s Muse AI assistant within approximately six weeks of its launch. The company is now focusing on expanding the service and improving its computing efficiency.
Meta has also introduced several AI models, including Muse Spark, Muse Glimmer, Muse Wonder, and Muse Spark Open. Its Muse Code assistant supports software development, while new AI avatars are intended to provide additional ways for users to interact with Muse.
During the earnings call, Zuckerberg said Meta plans to expand Muse to serve billions of users. Li also warned that ongoing regulatory scrutiny and upcoming US trials involving youth safety could affect the company’s financial performance.
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