Meta recorded record revenue, profits slashed by one-time tax charge

On October 30, Meta Platforms (META. O) reported third-quarter results on Wednesday, with revenue hitting a record high, but the company warned that capital expenditures will continue to rise in the future, sending shares down about 8% at one point in after-hours trading. The company said third-quarter revenue was $51.20 billion, a 26% increase from a year earlier; net profit was $2.70 billion, well below analysts' expectations. The company attributed the sharp drop in net profit to a one-time tax charge of $15.93 billion recognized in the promotion of Trump's "Big Beauty Act". Meta expects fourth-quarter revenue to be between $56 billion and $59 billion, roughly in line with market expectations. The company also said it expects total spending growth in 2026 to be significantly higher than in 2025, primarily due to higher infrastructure costs, including higher cloud spending and higher depreciation expenses. Meta will also raise its 2025 capital expenditure forecast, which is expected to be between $70 billion and $72 billion, from the previous estimate range of $66 billion to $72 billion.