Meta Platforms expects to record roughly $10 billion in legal expenses during the third quarter of 2026 after booking a $2.4 billion legal-proceedings charge in Q2. The charge helped push quarterly expenses to $42.03 billion, up 55% from a year earlier. The main legal risk is a multi-state lawsuit brought by 29 attorneys general, who allege that Facebook and Instagram were designed to be addictive to minors through recommendation algorithms, notification systems and engagement loops. Potential penalties have been estimated at as much as $1.4 trillion. A New Mexico jury also ordered Meta to pay approximately $942 million earlier in 2026 over related youth-safety claims, a verdict the company is appealing. CFO Susan Li said in Meta’s July 2026 earnings call that ongoing legal matters could have a "significant financial impact." Meta also incurred $1.18 billion in Q2 severance costs linked to headcount reductions. The company projects 2026 capital expenditures of $130 billion to $145 billion, mostly for AI infrastructure, and has raised its full-year total-expense outlook to $165 billion to $169 billion. That guidance includes potential losses from several youth-safety trials scheduled for later in 2026. Q2 revenue rose 28% year over year to $60.8 billion, driven by advertising and early improvements in AI-driven ad targeting.