Meta Platforms, Inc. heads into its Oct. 21 earnings report with expenses in focus after its stock closed lower for a fifth straight trading session Oct. 20.
Shares fell to $681.05 during the session, about 3.5% below the previous close of $705.44, before recovering to finish at $694.25, down 1.59%, according to S&P Global Market Intelligence data. The stock recorded a lower close in each trading session from Oct. 14 through Oct. 20.
Meta plans to release results for the quarter ended Sept. 30 after U.S. markets close Oct. 21. In July, it forecast quarterly revenue of $61 billion to $64 billion.
Meta’s second-quarter advertising revenue increased 27% from a year earlier to $59.36 billion, while total revenue rose 28% to $60.80 billion. Costs and expenses climbed 55% to $42.03 billion.
Meta said those expenses included $2.40 billion in legal charges and $1.18 billion in severance costs. Operating margin fell to 31% from 43% a year earlier, and free cash flow declined to $784 million from $8.55 billion. The legal and severance charges contributed to the expense increase.
Meta’s July outlook set 2026 capital expenditures at $130 billion to $145 billion, including principal payments on finance leases. It projected $165 billion to $169 billion in expenses for the year. That outlook gave no capital spending figure for 2027.
The company introduced Muse, a personal AI agent with free and subscription options, and announced Meta Enterprise Platform for business AI products and services. Its September announcements gave no revenue figures for either offering.
The year-earlier earnings comparison includes a tax item. Meta reported diluted earnings of $1.05 per share for the third quarter of 2025. Its tax provision included a $15.93 billion one-time, noncash charge; excluding that charge, Meta calculated earnings of $7.25 per share.
Meta’s earnings conference call is scheduled for 4:30 p.m. ET on Oct. 21.
