Meta Q3: Non-Recurring Charge Hit GAAP Earnings, Q4 Capex Will Jump Sharply

Meta Platforms, Inc.'s post-Q3 10% drop looks overdone. Earnings were distorted by non-recurring expense, and the capex outlook worry is overblown. Operating income fell 37% YoY, largely due to a $9.89 billion litigation charge, but forward opex guidance implies no incremental cost pressure in 4Q FY2026. META's ad revenue remains robust, driven by AI monetization as ad revenue per DAP has grown strongly.