US EditionMeta's Profit Hit by About $16 Billion One-Time Tax Charge, Shares Fall
Meta's $16 billion tax charge reflects new U.S. legislation, while capital spending for 2026 is raised to $70-$72 billion to support AI and data center investments.
- Meta recorded a nearly $16 billion one-time tax charge in the third quarter related to U.S. President Donald Trump's One Big Beautiful Bill Act, cutting net income to $2.71 billion, an 83% drop.
- Meta now expects capital expenditure between $70 billion and $72 billion, up from $66 billion to $72 billion, and struck a $27 billion deal last week with Blue Owl Capital to fund the Hyperion data center in Richland Parish, Louisiana.
- Reality Labs posted a $4.4 billion operating loss on $470 million in sales in the quarter, with cumulative losses exceeding $70 billion since late 2020, while EssilorLuxottica's Stefano Grassi said `Clearly there is a lift coming from Ray-Ban Meta wearables as a product category.`
- Rising expense guidance and AI spending fears pressured the stock, which fell about 6% after the bell amid investor concern over Meta Platforms Inc.'s $114-118 billion full-year 2025 expenses.
- Industry-Wide AI spending and Meta Platforms Inc.'s 3.54 billion daily users and $51.24 billion in third-quarter sales, up 26%, frame the firm's long-term AI opportunity, with Meta among top Nvidia AI chip buyers.
65 Articles
65 Articles
Meta takes $16B hit to earnings from Trump’s Big Beautiful Bill, warns of higher AI costs
Meta Platforms recorded a nearly $16 billion one-time charge in the third quarter related to President Trump's Big Beautiful Bill, and said its capital expenditure next year would be "notably larger" than in 2025.
Meta's profit hit by about $16 billion one-time tax charge, shares fall
Meta recorded a nearly $16 billion one-time charge in the third quarter related to U.S. President Donald Trump's Big Beautiful Bill, and said its capital expenditure next year would be "notably larger" than in 2025.
Meta’s profit hit by $16 billion tax charge
Meta recorded a nearly $16 billion one-time charge in the third quarter related to U.S. President Donald Trump’s Big Beautiful Bill, and said its capital expenditure next year would be “notably larger” than in 2025. Shares of the company fell around 6% after the bell. Excluding the charge, Meta said its third-quarter net income would have increased by $15.93 billion to $18.64 billion, compared to the reported net income of $2.71 billion. The soc…
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