Meta Tops Q3 Revenue Estimates, But Earnings Hit By Teen Lawsuit Settlement; Stock Split Creates Class C Shares

Meta reported record third-quarter revenue of $64 billion, above analysts’ $63.3 billion forecast, while its earnings were reduced by a settlement in a lawsuit over alleged mental health harms to teenagers. The results highlight strong sales alongside continuing legal and regulatory risks tied to the company’s youth-related policies.

Earnings per share were $3.83, compared with $7.40 excluding a $9.89 billion settlement charge; the agreement allows payments of up to about $18.59 billion and includes measures such as restricting some features for under-16s. Meta also announced a 2-for-1 stock split and new non-voting Class C shares, due to begin trading in January 2027, to help fund AI investment and potentially employee compensation while preserving Mark Zuckerberg’s control.