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Meta earnings: Reality Labs lost $4.13 billion from July to September 2026, and its revenue fell 6%
Meta's Reality Labs, the division behind the Quest headsets, lost $4.13 billion from July to September 2026, 7% less than the $4.43 billion it lost a year earlier, according to the results Meta released on Wednesday, Oct. 21. Reality Labs revenue fell 6% to $443 million. Over the first nine months of 2026 the division lost $12.78 billion, and Meta expects the full-year loss to land between $18 billion and $19 billion, below the 2025 total. Meta as a whole grew revenue 26% to $64.60 billion.
- Meta Quest
- VR
Meta’s VR division lost another $4 billion in a single quarter, though less than a year earlier. Here are Reality Labs' numbers for July to September 2026, what Meta expects for the full year and how the Quest business fits in.
How much did Reality Labs lose?
$4.13 billion from July 1 to Sept. 30, 2026. A year earlier, Reality Labs lost $4.43 billion, so the loss shrank by $303 million, or 7%. Meta released the numbers on Wednesday, Oct. 21, after the stock market closed, and discussed them on a call at 4:30 p.m. ET.
Over the first nine months of 2026, Reality Labs lost $12.78 billion, 3% less than the $13.17 billion it lost over the same months in 2025. Meta’s quarterly filing credits lower employee compensation for the smaller loss, partly offset by higher spending on third-party AI services.
Reality Labs revenue fell 6%
Reality Labs brought in $443 million from July to September, down from $470 million a year earlier. Meta’s filing describes the division as its virtual and augmented reality consumer hardware, software and content, which covers the Quest 3 and Quest 3S headsets, AI glasses such as Ray-Ban Meta and Meta Ray-Ban Display, and the games and apps sold for them. The filing ties the drop to lower Quest sales, partly offset by higher sales of AI glasses.
Quest prices went up earlier in the year. On April 19, 2026, the Quest 3 went up $100 to $599.99, and the Quest 3S to $349.99 for 128GB, as our Meta Quest 3 price page lists. Over nine months, revenue still edged up 2% to $1.28 billion.
What Meta expects for the rest of 2026
Meta expects “Reality Labs losses to decline compared to 2025,” to a range of $18 billion to $19 billion for the full year. With $12.78 billion already lost through September, that leaves a fourth-quarter loss of about $5.2 billion to $6.2 billion, the holiday quarter.
For all of Meta, the company forecast fourth-quarter revenue of $73 billion to $76 billion and full-year expenses of $175 billion to $179 billion.
How the rest of Meta did
Meta’s total revenue rose 26% to $64.60 billion. Family of Apps, which holds Facebook, Instagram, WhatsApp and Messenger, earned $17.12 billion from operations, more than four times what Reality Labs lost. Meta ended September with 66,775 employees, 15% fewer than a year earlier. Mark Zuckerberg’s statement focused on Meta’s push toward personal superintelligence and the launch of Muse.
What Reality Labs sells next
Meta hasn’t announced a Quest 4. At Connect on Sept. 23, 2026, it unveiled Meta VR Glasses, due in spring 2027 at $1,299.99, as our Meta Quest 4 page covers. Meta pitches the 100-gram glasses as a personal cinema, a workspace and a gaming console, and says they’re the first VR device with IMAX Enhanced certification.
The same event brought Ray-Ban Meta (Gen 3), with a slimmer design and longer battery life, and Ray-Ban Meta Audio glasses for music and calls. By the end of 2026, Meta plans to offer more than 100 AI glasses options across its styles and colors. Meta Ray-Ban Display glasses cost $799 in the US, as our Meta Ray-Ban Display page lists.
This page is updated as soon as Meta reports its results for October to December.
FAQ
How much did Meta Reality Labs lose in Q3 2026?
$4.13 billion, or $4,129 million, from July 1 to Sept. 30, 2026. A year earlier the division lost $4.43 billion, so the loss shrank by $303 million, or 7%.
What was Reality Labs revenue in Q3 2026?
$443 million, down from $470 million from July to September 2025, a drop of about 6%.
When did Meta report its Q3 2026 earnings?
On Wednesday, Oct. 21, 2026, after the stock market closed, with a conference call at 4:30 p.m. ET, or 1:30 p.m. PT.
How much will Reality Labs lose in 2026?
Meta expects a loss of $18 billion to $19 billion for the full year, lower than in 2025. With $12.78 billion lost through September, that points to a fourth-quarter loss of about $5.2 billion to $6.2 billion.
How much has Reality Labs lost in 2026 so far?
$12.78 billion in the first nine months, down 3% from $13.17 billion a year earlier. Revenue over the same nine months rose 2% to $1.28 billion.
Why did the Reality Labs loss shrink?
Meta’s quarterly filing credits lower employee compensation, partly offset by higher spending on third-party AI services. Meta’s headcount fell 15% from a year earlier, to 66,775.
What does Reality Labs include?
Meta’s virtual and augmented reality consumer hardware, software and content, according to Meta’s quarterly filing. That covers the Quest 3 and Quest 3S headsets, AI glasses such as Ray-Ban Meta, Oakley Meta and Meta Ray-Ban Display, and the apps and games sold for them.
How did the rest of Meta do?
Meta’s revenue rose 26% to $64.60 billion, and Family of Apps, which holds Facebook, Instagram, WhatsApp and Messenger, earned $17.12 billion from operations. Meta forecast fourth-quarter revenue of $73 billion to $76 billion.
Did Meta raise Quest prices in 2026?
Yes. On April 19, 2026, Meta raised the US price of the Quest 3 to $599.99 and the Quest 3S to $349.99 for 128GB, citing a surge in memory chip prices.
When is Meta's next earnings report?
Meta reports October to December results in late January, as it did on Jan. 28, 2026, and announces the exact date beforehand.
Pop quiz
1 questions from this story.
How much did Meta’s Reality Labs lose from July to September 2026?
Reality Labs lost $4.13 billion in the quarter, down from $4.43 billion a year earlier.
Your call
Would you buy a Meta headset or glasses?
