Confirmation that the $9.9 billion charge was booked in the third quarter reframes the operating income miss as largely one-off. That should ease concerns that rising core costs drove the shortfall. The effective stock split, delivered through non-voting shares, lowers the per-share price without diluting existing holders’ voting power. That means it is likely to be welcomed by retail investors while drawing governance scrutiny from institutions. Upcoming US youth-related trials remain a legal overhang that could bring further charges, keeping litigation risk in focus beyond this quarter. The roughly 1% currency headwind built into Q4 guidance is modest, but it suggests the revenue outlook carries little help from a weaker dollar.---Earlier:Meta Q3 beats on revenue and EPS as $9.9B legal charge lifts full-year expense outlook---Meta’s earnings call turned a messy profit miss into a cleaner story, pinning the shortfall on a one-off legal charge while unveiling a share split that leaves Mark Zuckerberg’s control untouched.Summary:Meta plans an effective 2-for-1 stock split by issuing one new non-voting share for each existing share, with trading expected to begin in late January 2027The company confirmed the $9.9 billion legal charge was booked in the third quarter and is included in its raised full-year expense guidance of $175 billion to $179 billionExcluding the charge, full-year operating income is expected to exceed 2025 levelsReality Labs is expected to lose $18 billion to $19 billion this year, a smaller loss than last yearQ4 revenue guidance of $73 billion to $76 billion assumes a currency headwind of about 1%; the Q4 tax rate is guided at 15% to 17%Capex guidance of $135 billion to $145 billion includes finance lease principal paymentsMeta flagged ongoing legal and regulatory scrutiny, including upcoming US youth-related trialsMeta Platforms plans an effective 2-for-1 stock split through the issuance of a new class of non-voting shares, the company said on its third-quarter earnings call. It also confirmed that a $9.9 billion legal charge was booked in the quarter, largely accounting for the operating income shortfall in its results.Under the plan, shareholders will receive one new non-voting share for each existing share they hold, with the new shares expected to begin trading in late January 2027. Structuring the split through non-voting stock doubles the share count without changing the balance of voting control. Meta had flagged the creation of the new Class C common stock in its results release, and the call clarified its purpose.Meta said its full-year expense guidance of $175 billion to $179 billion, raised from $165 billion to $169 billion, includes the third-quarter legal charge. Excluding that charge, the company expects full-year operating income to exceed 2025 levels. Third-quarter operating income came in at about $13 billion, well below analyst estimates of roughly $20.9 billion.The company also flagged ongoing legal and regulatory scrutiny, including upcoming US trials related to young users, an area that could keep litigation risk in focus.For the fourth quarter, Meta reiterated revenue guidance of $73 billion to $76 billion, compared with consensus of around $73.6 billion. That outlook assumes a currency headwind of about 1% year on year. It expects a fourth-quarter effective tax rate of 15% to 17%.Capital expenditure guidance was narrowed to $135 billion to $145 billion from $130 billion to $145 billion. Meta said the range includes principal payments on finance leases. In its Reality Labs division, the company expects a full-year loss of $18 billion to $19 billion, which it said would be lower than last year.Meta pointed to strong execution in the quarter across its core advertising and engagement initiatives. It said it continues to make progress on its personal superintelligence strategy, its long-term push to build advanced AI assistants for individual users. This article was written by Eamonn Sheridan at investinglive.com.