Meta, the parent company of Facebook, Instagram, and more, reported a staggering $51.2 billion in revenue for Q3 2025, a 26% jump and a new quarterly record. Despite the top-line growth, the tech giant fell far short of Wall Street expectations after a one-time tax charge tied to President Trump’s One Big Beautiful Bill Act.
The Tax Shock
Meta said the legislation led to “the recognition of a valuation allowance against our U.S. federal deferred tax assets, reflecting the impact of the U.S. Corporate Alternative Minimum Tax.” The result: a non-cash income tax charge of $15.93 billion, which slashed net income to $2.71 billion, down 83%, or $1.05 per share—far below analysts’ expected $6.69 EPS.
Without the one-time charge, Meta estimated diluted EPS would have been $7.25.
Despite the massive tax hit, the company expects a “significant reduction in U.S. federal cash tax payments” for the remainder of 2025 and beyond.
Strong Operations
Meta CEO Mark Zuckerberg highlighted the company’s business momentum:
“We had a strong quarter for our business and our community. Meta Superintelligence Labs is off to a great start, and we continue to lead the industry in AI glasses. If we deliver even a fraction of the opportunity ahead, then the next few years will be the most exciting period in our history.”
The company ended the quarter with $44.45 billion in cash, cash equivalents, and marketable securities, and a 78,450-strong workforce, up 8% year-over-year.
While the tax charge hammered short-term profitability, Meta’s record revenue, AI initiatives, and cash reserves suggest the company is positioning itself for continued growth—even under new U.S. tax law.
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