Stacy Pereira
- Meta delivered $47.52 billion in revenue (up 22% YoY) and $7.14 in earnings per share, well above analyst targets.
- Meta’s ad business generated $46.6 billion, driven by a solid 11% increase in ad impressions and a 9% lift in average ad prices.
- Meta spent $17 billion in Q2 capital expenditures and raised its full-year capex guidance to $66–72 billion.
Meta Platforms delivered a powerful second quarter, smashing expectations and reinforcing its dominance in digital ads while accelerating its AI transformation. The Instagram and WhatsApp parent reported $47.5 billion in revenue, up 22% year-over-year, significantly beating expectations.
Net income reached $18.3 billion, with EPS at ~$7.14, outperforming the forecasted $5.88 per share and much higher compared to $5.16 last year. But it was the advertising revenue that grew by a whopping $46.6 billion, up 21% this quarter. Growth was mainly driven by better targeting and engagement via Reels, Threads, and AI-powered tools. Meta also delivered an 11% increase in ad impressions and raised average price per ad by 9%, demonstrating strong demand and pricing power.
AI investments & capex plans
During the quarter, Meta spent $17 billion on capital expenditure to build AI data centers and infrastructure. This is part of its larger plan to spend $66–72 billion in full-year 2025 on capex. CEO Mark Zuckerberg shared the vision of “personal superintelligence” in a letter emphasizing that AI systems can self-optimize and empower users. He also broke the silence on attracting top talent, including former OpenAI and Scale AI leaders who have come flocking to Meta in the recent past.
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Markets cheer positive results
Meta’s stock jumped around 11% in after-hours trading on Wednesday after the results were announced. Speaking about the results, Farhan Badami at eToro said, “The rally was fueled by both the earnings beat and a bullish Q3 revenue forecast of up to $49 billion.” He added, “Meta is going head-to-head with major AI players like OpenAI and Anthropic…They plan on offering up to $300 million over four years to top AI researchers”—a clear signal of its ambitions.
Despite looming regulatory challenges in the EU and broader global uncertainties, Meta’s performance shows its ability to deliver strong growth in both revenue and profit, while investing for the future. “Operational efficiency and regulatory developments will be important to watch—but there’s no denying the momentum. The stock is now up over 760% from its 2022 lows—it’s Zuck’s world, and we’re just living in it,” Badami added.
