Meta's revenue hit a record high, but profits were significantly reduced due to a one-off tax expense.

Meta Platforms (META.O) reported record third-quarter revenue on Wednesday, but the company warned of continued increases in future capital expenditures, causing its shares to fall by about 8% in after-hours trading. The company said third-quarter revenue was $51.2 billion, a 26% year-over-year increase; net income was $2.7 billion, far below analysts' expectations. The company attributed the significant drop in net income to a one-time tax expense of $15.93 billion recognized in support of Trump's "Big Beauty Act." Meta expects fourth-quarter revenue to be between $56 billion and $59 billion, roughly in line with market expectations. The company also stated that it expects total expenditure growth in 2026 to be significantly higher than in 2025, primarily due to rising infrastructure costs, including increased cloud computing spending and higher depreciation expenses. Meta also raised its 2025 capital expenditure forecast to between $70 billion and $72 billion, up from its previous estimate of $66 billion to $72 billion.