Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB) posted a stronger-than-expected revenue in the third quarter of 2025, but a massive one-time tax charge sent earnings per share tumbling, sending shares sharply lower in after-hours trading.
GAAP EPS fell to $1.05, down 83% year-on-year and well below the $2.29 estimate, due to a $15.9 billion one-time, non-cash tax charge related to the implementation of the US Corporate Alternative Minimum Tax. Excluding this charge, EPS would have been $7.25, up 20% year-on-year.
Meta reported revenue of $51.24 billion, up 26% from a year ago and above analysts’ estimate of $49.59 billion. Daily active people reached 3.54 billion, an 8% increase from the prior year.
Operating income rose 18% to $20.54 billion, with an operating margin of 40%, slightly down from 43% a year earlier.
Revenue from Meta’s Family of Apps unit totaled $50.77 billion, beating estimates of $49.04 billion. Reality Labs, the company’s virtual and augmented reality division, reported an operating loss of $4.43 billion, narrower than analysts’ expected loss of $5.16 billion.
Meta did not disclose Reality Labs’ revenue but indicated Q4 would likely see a year-on-year decline due to the product cycle.
Meta forecast fourth-quarter revenue of $56 billion to $59 billion, above the roughly $55.3 billion expected by analysts. For full-year 2025, capital expenditures are now expected at $70 billion to $72 billion, slightly higher than the previous $66 billion to $72 billion range.
The company also flagged significantly higher CapEx and expenses for 2026, driven by AI infrastructure expansion.
CEO Mark Zuckerberg said the company had “a strong quarter for our business and our community,” and highlighted early progress at Meta Superintelligence Labs and its leadership in AI glasses.
“If we deliver even a fraction of the opportunity ahead, the next few years will be the most exciting period in our history,” he added.
Shares fell 8.2% in after-hours trading to $689.60.