Meta released its financial report for the third quarter of 2026, revealing revenue of $64.601 billion, a 26% year-over-year increase that surpassed market expectations. Net profit reached $9.860 billion, soaring by 264% year-over-year. However, due to $9.89 billion in legal fees related to teenage mental health and social media lawsuits, operating profit fell 37% year-over-year to $12.988 billion, with an operating profit margin of approximately 20%. Excluding this expense, operating profit would have been $22.88 billion, with adjusted diluted earnings per share of approximately $7.40. The growth in net profit was also aided by a low base effect from a high effective tax rate in the same period last year, with the effective tax rate for this quarter at 24%. Advertising business continued to grow, with Family series apps reaching approximately 3.64 billion daily active users and advertising revenue of about $63.06 billion. Reality Labs reported revenue of approximately $443 million and an operating loss of about $4.13 billion. Total expenses for the quarter were approximately $51.6 billion, up 68% year-over-year, with capital expenditures of about $34.9 billion, resulting in negative free cash flow of $2.12 billion. Cash and equivalents at the end of the quarter stood at approximately $82.4 billion. The company expects fourth-quarter revenue to be between $73 billion and $76 billion, with full-year capital expenditure guidance adjusted to $135 billion to $145 billion and full-year expense guidance raised to $175 billion to $179 billion. Excluding legal fees, full-year operating profit will still be higher than in 2025. Meanwhile, it is expected that Reality Labs' operating loss in 2026 will be approximately $18 billion to $19 billion, with the loss expected to narrow next year. Affected by the financial report, Meta's stock price rose 2.17% in after-hours trading.