Meta Earnings More Than Doubled Despite $10 Billion in Legal Fees

Meta reported a staggering $64.6 billion in third quarter revenue, representing a 26% increase over the previous year. Analysts had projected revenue of $63.3 billion for the same period. The company's earnings per share, excluding one-time legal charges, came in at $7.40, surpassing Wall Street's forecast of $5.46 per share.

One-time expenses related to social media addiction trials and teenage mental health lawsuits accounted for $9.89 billion in costs and expenses for the quarter. Despite this hefty legal fee payout, Meta managed to exceed Wall Street expectations.

In August 2026, Meta reached an agreement with 52 attorneys general to settle litigation surrounding teen mental health and social media concerns. As part of the settlement, the company agreed to pay up to approximately $18.59 billion in payments. The report outlined the significant financial impact of this agreement, stating that "third quarter 2026 costs and expenses includes a $9.89 billion charge related to this agreement."

Adding to Meta's legal woes, the company was hit with a $25 billion penalty earlier in the week. New Mexico Judge Francis J. Mathew imposed the fine as one of the largest penalties against a tech company to date. The judge found that Meta had committed nearly 44 million violations of New Mexico's consumer protection laws, primarily related to misleading Facebook users about data privacy practices.