Meta’s Almost $10 Billion Legal Costs Take Huge Toll on Q3 Earnings, Wall Street Shrugs

Meta’s third-quarter earnings were weighed down by nearly $10 billion in legal costs tied to an $18 billion settlement with state attorneys general, leaving earnings per share below analysts’ expectations. Revenue grew strongly, however, and Meta’s share price rose 5% after the results, suggesting investors focused on the strength of its underlying business.

Revenue reached $64.6 billion, while net income was $9.86 billion and earnings per share were $3.83, compared with analysts’ forecast of $5.46 per share. Meta said operating income would have been $22.88 billion without the $9.89 billion settlement charge. The results came hours after a New Mexico judge ordered the company to pay $25 billion in a separate case; Meta also reported that more than 10 million people in the US and Canada had set up its Muse AI agents.