Meta beat revenue forecasts with $64.6bn in Q3 but saw operating profit halved by a $10bn youth safety settlement and negative free cash flow, as AI capex nearly doubled. Shares rose over 5% after hours on long-term AI optimism.
01Summary
- 01Meta's Q3 revenue rose 26% to $64.6bn, above the $63.3bn analyst consensus.
- 02Operating income fell 37% to $13bn, hit by a $10bn settlement for teen mental health litigation.
- 03Capital expenditure hit $34.9bn, nearly double the $19.4bn a year ago.
- 04Free cash flow was negative $2.1bn, compared with positive $10.6bn a year earlier.
- 05A New Mexico judge ordered Meta to pay $25bn in penalties over Cambridge Analytica; Meta plans to appeal.
02Why it matters
The results show Meta is sacrificing short-term profits and cash flow to invest heavily in AI, a bet that investors currently support but which carries risks if returns do not materialise.
Answers are generated by AI from the story summary; they are not investment, health or legal advice.





