Meta's Q3 Earnings Impacted by $16 Billion Tax Charge from Recent Legislation

Meta Platforms reported a significant decline in third-quarter earnings, attributing the downturn to a $15.93 billion tax charge associated with the 'One Big Beautiful Bill' signed into law by President Trump in July. The company's earnings per share fell to $1.05, an 85% decrease from the previous year, and well below analysts' expectations of $6.70. Excluding the one-time tax charge, earnings per share would have been $7.25, surpassing projections. Revenue increased by 26% year-over-year to a record $51.24 billion, exceeding analyst estimates. Following the earnings announcement, Meta's stock declined by 9% in after-hours trading. The company also raised its capital expenditures forecast to a range of $70 billion to $72 billion, up from the previous range of $66 billion to $72 billion, marking the third increase this year as it continues to invest in AI capabilities. Looking ahead, Meta anticipates fourth-quarter revenue between $56 billion and $59 billion, ahead of analyst consensus, and expects a significant reduction in U.S. federal cash tax payments for the remainder of 2025 and beyond.