Meta posts record revenue, but profits drop sharply due to one-time tax expense

Jinse Finance reported that Meta Platforms (META.O) announced its third-quarter results on Wednesday, with revenue reaching a record high. However, the company warned that future capital expenditures would continue to rise, causing its stock price to drop by about 8% in after-hours trading. The company stated that third-quarter revenue was $51.2 billion, a year-on-year increase of 26%; net profit was $2.7 billion, far below analysts' expectations. The company attributed the sharp decline in net profit to a one-time tax expense of $15.93 billion recognized for promoting Trump's "Big Beautiful Bill." Meta expects fourth-quarter revenue to be between $56 billion and $59 billion, roughly in line with market expectations. The company also stated that it expects total spending growth in 2026 to be significantly higher than in 2025, mainly due to rising infrastructure costs, including increased cloud computing spending and higher depreciation expenses. Meta also raised its capital expenditure forecast for 2025, expecting spending to be between $70 billion and $72 billion, up from the previous estimate of $66 billion to $72 billion.