Meta Beats Revenue Forecasts, Teen Lawsuit Costs Slash Q3 Profit

WHO:

Deadline - Meta reported its third-quarter financial results; analysts provided the consensus revenue forecast.

Variety - Meta faced a nationwide settlement with state attorneys general.

WHAT:

Deadline - Meta’s revenue for the July-to-September quarter reached a record $64 billion, above analysts’ $63.3 billion consensus forecast.

Deadline - Meta reported earnings per share of $3.83, which also beat expectations.

Deadline - Earnings were affected by the company’s settlement of a lawsuit filed on behalf of teenage social media users.

Deadline - The article’s headline says a stock split creates Class C shares.

Variety - Meta’s quarterly revenue was $64.6 billion, up 26%; the article also reports quarterly revenue was up 28%.

Variety - Meta’s net income was $9.86 billion.

Variety - Meta incurred nearly $10 billion in additional third-quarter costs tied to an $18 billion nationwide settlement with state attorneys general.

Variety - The legal costs caused earnings to miss Wall Street expectations; the headline reports that Wall Street shrugged.

WHY:

Deadline - Earnings took a hit because of the settlement of litigation brought on behalf of teenage social media users.

Variety - The additional costs resulted from Meta’s nationwide settlement with state attorneys general.

HOW:

Deadline - Meta’s quarterly revenue and earnings per share exceeded analyst forecasts, while the lawsuit settlement reduced earnings.

Variety - The settlement led to nearly $10 billion in additional costs recorded during the quarter.

(UPDATED October 21, 2026 21:24 UTC)

Meta reported record quarterly revenue of $64.6 billion, beating analysts’ forecast of $63.3 billion. Revenue was up 26% from a year earlier, while another reported figure put the increase at 28%. Earnings per share came in at $3.83, also above expectations, but legal costs weighed heavily on the bottom line. Meta recorded nearly $10 billion in additional costs tied to an $18 billion nationwide settlement with state attorneys general. The settlement resolves litigation brought on behalf of teenage social media users. Meta reported net income of $9.86 billion for the quarter. The company also announced a stock split that creates Class C shares. Despite the legal costs and their impact on earnings, Wall Street showed little reaction, according to one report.