Meta Q3 Earnings: 26% Revenue Growth Amid $15.9B Tax Charge

Meta Q3 earnings showed robust performance, with revenue up 26% year-on-year to $51.24 billion, driven by stronger ad sales. Operating income rose 18% to $20.53 billion. A one-time $15.93 billion tax charge under new US rules cut net income by 83% to $2.71 billion, though adjusted profit would have been $18.64 billion. Reality Labs narrowed its loss to $4.4 billion on $470 million in sales, bringing cumulative losses since 2020 above $70 billion. Daily active users across Meta’s apps reached 3.54 billion (+8%), ad impressions grew 14% and average prices rose 10%. Total costs climbed to $30.71 billion, reflecting AI and infrastructure investment, while capex hit $19.37 billion. Meta ended Q3 with $44.45 billion cash and repurchased $3.16 billion in shares. For Q4, revenue is forecast at $56–59 billion, expenses at $116–118 billion and a tax rate of 12–15%. Traders should watch how Meta Q3 earnings performance and Reality Labs losses influence tech sector risk appetite and potential capital flows into crypto assets.