# Meta revenue beats forecasts but legal charges weigh on profit

> Meta's profits drop 50% as $18bn legal settlement hits earnings.
- Title: Meta revenue beats forecasts but legal charges weigh on profit
- Summary: Meta's profits drop 50% as $18bn legal settlement hits earnings. Meta reported $9.86 billion in Q3 profits, 50% below expectations, due to a $9.9 billion…
- Keywords: meta, revenue, legal charges, profit, us$18 billion, cambridge analytica, ai investment, zuckerberg, california tax, non-voting shares, news, world
- Source: Malay Mail — https://malaymail.com/news/money/2026/10/22/meta-revenue-beats-forecasts-but-legal-charges-weigh-on-profit/240122
- Published: 2026-10-22T09:41:39+00:00
- Read time: 1 min
- Topics: meta, revenue, legal charges, profit, us$18 billion, cambridge analytica, ai investment, zuckerberg, california tax, non-voting shares, news, world
## Meta earnings report
Meta reported US$9.86 billion in Q3 profits, 50% below investor expectations.
## Legal settlement impact
A US$9.9 billion charge related to a US$18 billion legal settlement with US states reduced profits.
## New Mexico penalty
Meta must pay US$25 billion to New Mexico after a jury found it deceived users in Cambridge Analytica case.
## AI investment focus
Meta's AI division Reality Labs aims for profitability with 10 million users in US and Canada.
## AI hardware progress
Meta unveiled AI-powered glasses and Muse model for wearables, targeting 10 million users.
## Capital expenditures
Meta spent US$35 billion on capital expenditures in Q3, below investor expectations of US$41 billion.
## AI roadmap funding
Meta plans to issue non-voting shares to raise cash for AI investments and retain Zuckerberg.
## California tax concerns
Proposition 40 tax on billionaire wealth could reduce Zuckerberg's voting power to 53% or lower.
## Next steps for Meta
Meta shares rose 7% after earnings report as investors react to legal and AI developments.
## Key takeaway

Meta reported $9.86 billion in Q3 profits, 50% below expectations, due to a $9.9 billion legal charge from a US$18 billion settlement with US states.