Meta beats third quarter estimates despite settlement charge

Meta reported third quarter revenue of $64.60 billion, up 26 percent year on year and above the $63.33 billion analysts expected, with earnings of $3.83 per share beating the $3.57 consensus despite a $9.89 billion legal charge.

Why it matters: Meta absorbed a near $10 billion settlement charge and still beat on revenue and earnings while guiding capital spending to $135 billion to $145 billion, which shows the AI buildout, not litigation, remains the binding claim on its cash flow.

Data as of Investing.com and The Verge reports of October 21, 2026, both read in full, reporting Meta's third quarter results published on Wednesday, October 21, 2026. The $9.89 billion charge is the third quarter portion of the August settlement with state attorneys general over teen mental health litigation, separate from the $25 billion New Mexico penalty ordered the same day and covered elsewhere on this site. Developing item.

Meta’s third quarter revenue rose 26 percent to $64.60 billion, above analyst expectations of $63.33 billion, with advertising revenue up 26 percent to $63.06 billion and earnings of $3.83 per share beating the $3.57 consensus. The quarter carried a $9.89 billion legal charge for the settlement with 52 state attorneys general over teen mental health litigation; without it, income from operations would have been $22.89 billion, and Meta guided fourth quarter revenue to $73 billion to $76 billion.

The company forecast capital spending of $135 billion to $145 billion as it continues building AI infrastructure, and its board approved a new publicly listed nonvoting Class C share, effective January 19, 2027, to be issued as a one-time dividend of one Class C share for each Class A and Class B share held, with the effect of a two for one split on the Class A price and no change in voting power.

Meta beats third quarter estimates despite settlement charge

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