Meta Reports Q3 Revenue Growth Amid Significant Tax Charge

Meta Platforms, the parent company of Facebook and Instagram, announced a 26% year-over-year increase in third-quarter revenue, reaching $51.24 billion. This growth was primarily driven by strong advertising performance. However, the implementation of the U.S. Corporate Alternative Minimum Tax under the One Big Beautiful Bill Act led to a one-time, non-cash income tax charge of $15.93 billion. Consequently, net income for the quarter declined by 83% to $2.71 billion, with diluted earnings per share at $1.05. Excluding this tax charge, diluted EPS would have been $7.25. Daily active users across Meta's family of apps averaged 3.54 billion in September, marking an 8% increase from the previous year. CEO Mark Zuckerberg commented, "We had a strong quarter for our business and our community." The Reality Labs segment, encompassing VR and AR products, reported a revenue of $470 million and an operating loss of $4.43 billion. Looking ahead, Meta forecasts fourth-quarter revenue between $56 billion and $59 billion and anticipates capital expenditures for 2025 to be between $70 billion and $72 billion, up from the prior outlook of $66 billion to $72 billion.