Meta Stock Jumps After Hours: $64.6 Billion Revenue Beat Hides a $9.89 Billion Settlement Charge

Meta Platforms just beat Wall Street on revenue in Q3 2026 — $64.601 billion versus about $63.38 billion expected — and Meta stock rose in after-hours trading, even though a $9.89 billion litigation settlement charge cut reported earnings per share to $3.83.

What happened in Meta's Q3 2026 earnings?

Meta reported third-quarter revenue of $64.601 billion, up 26% year over year and ahead of analyst estimates of about $63.3 billion to $63.38 billion. Advertising remained the engine, contributing $63.06 billion of that total. The headline profit number needs context: diluted EPS was $3.83, below the $4.98 consensus cited in coverage, but Meta said EPS would have been $7.40 without a $9.89 billion charge tied to August's teen mental-health / social media addiction litigation settlement. That charge also reduced operating income from $22.88 billion to $12.99 billion in the reported figures.

Chief Executive Mark Zuckerberg framed the quarter around AI milestones, saying in the earnings release: "We hit major milestones this quarter toward delivering personal superintelligence for everyone - including launching Muse and Muse Wonder, our first frontier model," adding that "our investments are paying off, the core business is strong, and we're seeing velocity across the board."

Why is Meta stock rising after hours?

Investors focused on the underlying business, not just the one-off charge. Finnhub market data showed Meta closed the regular session at $697.52, up $3.27, and traded at $724.02 in after-hours at 5:39 p.m. ET, up 3.80% from the close. Coverage from multiple outlets described shares as extending gains after hours on the revenue beat and stronger guidance. In other words, the market treated the settlement charge as a known, separable cost, while rewarding resilient advertising growth and a confident outlook for the holiday quarter.

The reaction also stands out because Meta shares had fallen in the sessions after three of its last four quarterly reports, and options traders had priced in a roughly 10.5% move either way heading into this print. A positive after-hours move, rather than another slide, is why the report is trending in finance chatter tonight.

What did Meta guide for Q4 2026?

Meta guided fourth-quarter revenue to $73 billion to $76 billion. The midpoint, $74.5 billion, is ahead of the $73.57 billion consensus cited by Investing.com in coverage of the report. Separate reports noted Meta also narrowed / tightened its full-year capital expenditure range, raising the lower end as it continues heavy AI investment. That combination — strong Q4 sales guidance plus more defined spending — gave investors clearer visibility than the headline EPS miss suggested.

What are the risks investors are watching?

Two legal and spending questions remain. First, coverage highlighted a separate $25 billion New Mexico court judgment as an additional financial complication alongside the settlement already reflected in Q3. Reports presented that figure as a risk to weigh, not as part of the Q3 EPS calculation above, so readers should treat its final cost and timing as unresolved until Meta or court filings confirm more. Second, Meta's AI spending remains enormous, and Reality Labs losses were described in earnings coverage as higher than expected this quarter, even as the company projects those losses will narrow in coming quarters. The core question from tonight's coverage is consistent: how much of Meta's advertising growth will ultimately reach shareholders after AI capex and legal costs.

No part of this report is financial advice. It reports what Meta disclosed, how analysts and outlets described expectations, and how the stock reacted in after-hours trading on October 21, 2026.

Key facts at a glance

• Revenue: $64.601 billion, up 26% year over year, vs. about $63.38 billion expected
• Advertising revenue: $63.06 billion
• Reported diluted EPS: $3.83, including a $9.89 billion settlement charge; $7.40 excluding that charge, per Meta
• Q4 guidance: $73 billion to $76 billion revenue
• Stock reaction: Closed at $697.52; $724.02 after hours (+3.80%) in Finnhub data at 5:39 p.m. ET

Sources

• Shacknews — Facebook (META) Q3 2026 earnings results beat revenue expectations
• TalkMarkets — Meta Stock Jumps On Earnings - But $25B Penalty Raises Stakes
• Invezz — Meta stock jumps on earnings - but $25 billion penalty raises stakes
• Seeking Alpha — Meta Platforms delivers Q3 beat, narrows capex range

FAQ

Did Meta beat earnings expectations in Q3 2026?

Meta beat revenue expectations with $64.601 billion versus about $63.38 billion expected. Reported EPS of $3.83 missed consensus, but Meta said EPS would have been $7.40 without a $9.89 billion settlement charge.

Why did Meta stock rise after hours if EPS missed?

Investors focused on the revenue beat, $63.06 billion in advertising, and Q4 guidance of $73 billion to $76 billion, treating the settlement charge as a one-off cost rather than a sign of weaker core demand.

What is Meta's Q4 2026 revenue guidance?

Meta guided Q4 revenue to $73 billion to $76 billion, with a $74.5 billion midpoint ahead of the $73.57 billion consensus cited in coverage.

What was the $9.89 billion charge in Meta's earnings?

It was the portion of a social media addiction / teen mental-health litigation settlement reflected in Q3, which reduced reported operating income and diluted EPS for the quarter.