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Meta Profit Plunges on One-Time Tax Charge as Revenue Beats and AI Spend Swells

Meta now targets $56–$59 billion in fourth-quarter revenue alongside a 2025 capex plan of $70–$72 billion.

Overview

  • Third-quarter revenue rose to about $51.2 billion, up roughly 26% year over year and ahead of expectations.
  • A non-cash income-tax charge of about $15.9–$16 billion tied to the One Big Beautiful Bill cut reported net income to roughly $2.71 billion.
  • Excluding the charge, Meta said net income would have been about $18.64 billion with earnings of roughly $7.25 per share versus the reported $1.05.
  • Management projected fourth-quarter revenue of $56–$59 billion and outlined 2025 capital spending of $70–$72 billion with plans for higher outlays into 2026, including AI hiring and greater use of external cloud providers.
  • Shares fell more than 8% in after-hours trading as the company also pointed to a $27 billion Blue Owl Capital financing for its Hyperion data center in Louisiana.