Meta’s $18 billion nationwide settlement with state attorneys general forced nearly $10 billion in additional costs for the company during its third quarter in 2026, missing Wall Street expectations even as its quarterly revenue was up 28%.
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The company‘s revenue for the quarter hit $64.6 billion, up 26%, while its net income was $9.86 billion, up 264%. Its earnings per share hit $3.83. Analysts polled by LSEG Data & Analytics expected the company’s revenue to hit $63.4 billion and earnings per share of $5.46.
Wall Street analysts didn’t seem to mind the lower EPS, however, as its share price was up 2% after market close.
The earnings report came hours after a New Mexico state judge ordered Meta to pay $25 billion after a jury found the company liable last month for deceiving users about Facebook‘s data privacy and content moderation policies. That ruling came after Meta reached an $18 billion settlement with 52 state attorneys general in August over claims that it designed Instagram with addictive features, knowingly exposed young users to serious mental harms, and intentionally misled the public about the safety of its platforms, among other claims.
More to come…