Meta's Q3 2025 Earnings Drop Amid $16 Billion Tax Charge and AI Investment Push

Meta Projects expects a significant increase in expenses in 2026 due to heavy investments in AI infrastructure, including data centers and talent, despite reporting strong Q3 earnings of $2.71 billion which included a $15.9 billion one-time tax charge. The company aims to balance long-term AI growth with short-term profitability, with revenue projections of $56-$59 billion for the year, while its Reality Labs unit continues to incur substantial losses. Shares declined after the earnings report, reflecting investor concerns over rising costs and delayed returns on AI investments.