Meta increased third-quarter revenue 26%, but a large litigation charge pushed reported operating profit lower. The 21 October 2026 release reported $64.601 billion revenue and $12.988 billion operating income for the quarter ended 30 September, with operating income down 37% from a year earlier.
Costs included a $9.89 billion charge tied to its previously announced agreement with US state attorneys general. That charge is central to the earnings comparison; omitting it would leave readers with an incomplete explanation of the operating decline.
What Meta reported
| Measure | Verified figure |
|---|---|
| Revenue | $64.601 billion; +26% year on year Source |
| Operating income / operating margin | $12.988 billion / 20%; operating income down 37% Source |
| Litigation-related charge | $9.89 billion included in Q3 costs Source |
| Reported net income | $9.860 billion versus $2.709 billion Source |
| Reported diluted EPS | $3.83 Source |
| Q4 revenue outlook | $73 billion to $76 billion; forecast Source |
Net income rose despite lower operating profit because the prior-year comparison carried a much larger income-tax expense. The effective tax rate was 24% this quarter versus 87% a year earlier. Net-income growth therefore is not evidence of equivalent growth in operating earnings.
Keep the charge illustration separate
Meta said diluted EPS would have been $7.40 without the litigation charge, compared with the reported $3.83. That is a company-provided exclusion illustration, not an additional profit or cash payment and not a substitute for the reported figure.
Operating profit measures the business before interest and tax effects. Net income includes those later items. Reading the two together helps identify whether an earnings change comes from operations, a special cost or tax comparisons.
The next-quarter revenue range is a forecast. This release does not establish that future spending will deliver a particular return or that every advertiser will receive the same benefit.
For context on the limits of company-described advertising performance, see CapKet’s Meta GEM claims explainer. No stock-price response is inferred here.
Official evidence and scope
Meta Platforms official results and financial tables. Source observed at 2026-10-22T06:18:37.070Z. Figures refer to the stated reporting period, not a live market quotation. The source comparison is AI-assisted, not independent human editorial approval. No share-price reaction or investment recommendation is asserted.
Meta Platforms supplementary official results resource, observed at 2026-10-22T06:22:33.774Z. This issuer resource and the main document are not independent corroborating sources. The supplementary page supplies the issuer’s forward-looking-statement caution, not a second verification of the financial figures.
Recorded source observation: . This is a source-check timestamp, not a market quote or a new article update.