Meta Platforms reported a 26% increase in third-quarter revenue to $64.6 billion, exceeding Wall Street expectations of approximately $63.3 billion, as its advertising business continued to grow despite mounting legal expenses and substantial investments in artificial intelligence.
Net income rose 264% from a year earlier to $9.86 billion, compared with $2.71 billion in the third quarter of 2025. Diluted earnings per share increased to $3.83 from $1.05, according to financial results released on October 21.
However, the sharp increase in net income partly reflected a comparison with the previous year’s unusually high tax expenses, rather than an equivalent improvement in operating profitability.
Operating Profit Falls 37% Following Legal Settlement
Meta’s operating income declined 37% year over year to $12.99 billion, down from $20.54 billion a year earlier. Its operating margin narrowed to 20% from 40%, reflecting a significant increase in reported expenses.
The company recorded a $9.89 billion charge related to an agreement with 52 U.S. state attorneys general concerning litigation over teen mental health and social media. The broader settlement provides for payments of up to approximately $18.59 billion.
Total quarterly costs and expenses increased 68% to $51.61 billion. The legal charge accounted for a substantial portion of the increase, making it important to distinguish the extraordinary expense from Meta’s underlying business performance.
Meta Raises 2026 Capital Spending Forecast
Meta narrowed its expected capital expenditures for 2026 to between $135 billion and $145 billion, raising the lower end of its previous forecast of $130 billion to $145 billion.
The company also raised its full-year expense forecast to between $175 billion and $179 billion, incorporating the legal charge recognized during the third quarter.
Excluding that charge, the company said it continued to expect operating income for 2026 to exceed its 2025 level.
Looking ahead, Meta projected fourth-quarter revenue of $73 billion to $76 billion, compared with analysts’ expectations of approximately $73.7 billion.
The midpoint of the company’s forecast, $74.5 billion, is above the consensus estimate, suggesting continued revenue growth toward the end of the year.
Sources: Meta Platforms, Third Quarter 2026 Financial Results, October 21, 2026; Reuters, October 21, 2026; Associated Press, October 21, 2026.
