Meta Reports $9.89 Billion Child Safety Settlement Charge, Cutting Q3 Operating Income Nearly in Half
Meta’s $9.89 billion child-safety payment drove Q3 costs to $51.61 billion, while revenue still climbed 26% year over year to $64.60 billion. The broader $17.1 billion settlement could fall to $5.3 billion if YouTube and TikTok adopt stricter safeguards.
Meta paid $9.89 billion in the third quarter of 2026 as part of a child safety settlement with US attorneys general, according to the company’s Q3 earnings report released Wednesday. Without that charge, Meta’s income from operations would have been $22.89 billion for the quarter.
The payment represents a portion of a broader $17.1 billion settlement Meta agreed to in August, resolving a nationwide lawsuit alleging the company deliberately made its social media platforms addictive to children. Under the settlement terms, Meta will only be required to pay $5.3 billion of the total if YouTube and TikTok implement stricter safety settings and safeguards for younger users — a condition Meta also agreed to as part of the deal.
Meta’s total costs and expenses for the quarter reached $51.61 billion, including the settlement amount. Despite the significant charge, the company reported $64.60 billion in revenue, a 26 percent increase compared to the same period last year.
“We hit major milestones this quarter toward delivering personal superintelligence for everyone,” CEO Mark Zuckerberg said in the earnings press release. “Our investments are paying off, the core business is strong, and we’re seeing velocity across the board.”
Meta’s legal exposure may not end there. On the same day the earnings report was released, a New Mexico court ordered the company to pay $25 billion related to the Cambridge Analytica scandal, which could mean substantially larger litigation costs ahead.