Meta Platforms’ third-quarter operating income dropped 37% after a $9.89 billion legal charge, even as revenue rose 26% and exceeded an analyst estimate cited by The Associated Press.
Revenue for the three months ended Sept. 30 reached $64.601 billion, above the $63.34 billion estimate reported by the Associated Press. Meta said the charge was tied to an August agreement with 52 attorneys general and that payments under the agreement could total up to about $18.59 billion.
Minnesota Attorney General Keith Ellison described the nationwide settlement as having a $12.2 billion minimum, with the total potentially reaching $17.1 billion if other platforms adopt comparable protections. He said Minnesota expects to receive between $214 million and $307 million. The state’s proposed terms would limit children ages 13 to 17 to a combined two hours a day on Instagram and Facebook, block nighttime access and pause notifications during weekday school hours in the school year.
Net income rose 264% to $9.86 billion from $2.709 billion a year earlier. The third quarter of 2025 included a one-time, noncash tax expense of $15.93 billion tied to implementation of the One Big Beautiful Bill Act. Meta said that without the legal charge, third-quarter operating income would have been $22.88 billion and diluted earnings per share would have been $7.40; reported diluted earnings per share were $3.83.
Separately, a New Mexico district court ordered Meta on Oct. 21 to pay $25 billion in civil penalties under the state’s Unfair Practices Act. That order came in a different case from the attorneys general agreement.
Meta forecast fourth-quarter revenue of $73 billion to $76 billion and set its 2026 capital expenditure outlook at $135 billion to $145 billion, raising the bottom of its prior range by $5 billion. Meta founder and CEO Mark Zuckerberg said, “Our investments are paying off, the core business is strong, and we're seeing velocity across the board.”
