Meta more than triples profit to $9.9 billion despite $9.9 billion teen-litigation charge

Meta Platforms grew revenue 26% in the third quarter and more than tripled its profit from a year ago, even after absorbing a $9.89 billion charge tied to its settlement with state attorneys general over teen mental health and social media.

Revenue rose to $64.60 billion from $51.24 billion, according to the earnings release Meta filed with an 8-K on Wednesday. Net income jumped to $9.86 billion, or $3.83 a share, from $2.71 billion, or $1.05, in the year-ago quarter, when results carried an 87% effective tax rate.

Excluding the litigation charge, Meta said diluted EPS would have been $7.40 and operating income would have been $22.88 billion. The August agreement with 52 attorneys general provides for payments of up to about $18.59 billion, the company said.

Ads still doing the heavy lifting

Ad impressions across Meta's Family of Apps rose 10% from a year earlier, and the average price per ad climbed 14%. Family daily active people averaged 3.64 billion in September, up 3%.

"Our investments are paying off, the core business is strong, and we're seeing velocity across the board," founder and CEO Mark Zuckerberg said in the release, which also highlighted the launch of Muse and Muse Wonder, which Meta called its first frontier model.

Total costs and expenses rose 68% to $51.61 billion including the charge, pushing the operating margin down to 20% from 40%. Headcount fell 15% to 66,775.

Spending and outlook

Capital expenditures, including finance-lease principal payments, totaled $34.91 billion in the quarter. Operating cash flow was $32.79 billion, while free cash flow was negative $2.12 billion.

Meta expects fourth-quarter revenue of $73 billion to $76 billion. It raised its 2026 total expense outlook to $175 billion to $179 billion to include the legal charge and narrowed 2026 capital spending to $135 billion to $145 billion from $130 billion to $145 billion. It now expects Reality Labs losses of $18 billion to $19 billion this year and about $15 billion next year.

The company also announced a new non-voting Class C common stock, to be distributed as a one-for-one stock dividend in 2027.

By the numbers

• Revenue: $64.60 billion, up 26%
• Diluted EPS: $3.83, or $7.40 excluding the legal charge
• Average price per ad: up 14%
• Q3 capital expenditures: $34.91 billion
• Q4 revenue outlook: $73 billion to $76 billion
• Cash and marketable securities: $82.45 billion

Sources

1. Meta Platforms, Inc., Form 8-K (Items 1.01, 2.02, 8.01) with Exhibit 99.1 earnings release dated Oct. 21, 2026, accession 0001628280-26-066700

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