This is not a surprise. Here's the story from the NYT:
The First Amendment protects hateful protests at military funerals, the Supreme Court ruled on Wednesday in an 8-to-1 decision.
“Speech is powerful,” Chief Justice John G. Roberts Jr. wrote for the majority. “It can stir people to action, move them to tears of both joy and sorrow, and — as it did here — inflict great pain.”
But under the First Amendment, he went on, “we cannot react to that pain by punishing the speaker.” Instead, the national commitment to free speech, he said, requires protection of “even hurtful speech on public issues to ensure that we do not stifle public debate.”
The decision, from which Justice Samuel A. Alito Jr. dissented, was the latest in a series of muscular First Amendment rulings from the Roberts court. Last year, the court struck down laws limiting speech about politics and making it a crime to distribute depictions of cruelty to animals.
Reaction from ScotusBlog:
The Court concluded that the protests in this case met the public interest standard. “The ‘content’ of Westboro’s signs plainly relates to broad issues of interest to society at large, rather than matters of ‘purely private concern.’ The placards read ‘God Hates the USA/Thank God for 9/11,’ ‘America is Doomed,’ ‘Don’t Pray for the USA,’ … While those messages may fall short of refined social or political commentary, the issues they highlight—the political and moral conduct of the United States and its citizens, the fate of our Nation, homosexuality in the military, and scandals involving the Catholic Clergy—are matters of public import.”
The fact that the protesters appear at a funeral and refer to a particular individual – such as the service member for whom the funeral is being held – does not convert the protest into a discussion of a private matter unprotected by the First Amendment. ...
The Court left undecided two important issues that it concluded were not squarely presented. First, it recognized that the government may regulate the “time, place, and manner” of speech and that the State of Maryland (where this protest was held) subsequently enacted a statute governing the circumstances in which funeral protests may be held. The Court did not decide the constitutionality of that statute or other similar federal and state laws. The Court may have been motivated to grant review in the case and still affirm in order to issue an opinion that, unlike the arguable implications of the court of appeals’ decision, did not call such statutes into question.
Second, the Court acknowledged that the plaintiffs had also brought suit on the basis of statements made by the defendants on a website. But it concluded that the issue had been waived by not preserving it in the petition for certiorari and only briefly mentioning it in the merits briefing. The Court was therefore able to limit its decision strictly to the context of funeral protests.