Meta Platforms Inc. (NASDAQ: META) delivered a robust first-quarter performance in 2025, surpassing Wall Street expectations with a 16% year-over-year revenue increase to $42.31 billion. Net income rose 35% to $16.64 billion, translating to earnings per share of $6.43, exceeding analyst forecasts of $5.23.
The company’s advertising revenue, which constitutes the majority of its income, climbed 16% to $41.39 billion. This growth was driven by a 5% increase in ad impressions and a 10% rise in average price per ad. Despite concerns over new U.S. tariffs affecting Chinese advertisers like Temu and Shein, Meta’s advertising outlook remains strong.
Meta has raised its 2025 capital expenditure forecast to between $64 billion and $72 billion, up from the previous range of $60 billion to $65 billion. This increase is primarily to support investments in artificial intelligence infrastructure and data centers. CEO Mark Zuckerberg emphasized the company’s commitment to AI, noting that Meta AI now has nearly 1 billion monthly active users.
The company’s user base continues to grow, with 3.43 billion daily active people across its apps, a 6% increase from the previous year. Despite ongoing losses in its Reality Labs division, which reported a $4.2 billion loss this quarter, Meta remains focused on long-term investments in augmented and virtual reality technologies.
Meta projects second-quarter revenue between $42.5 billion and $45.5 billion, reflecting confidence in continued growth. The company’s stock rose over 4% in after-hours trading following the earnings announcement, indicating investor confidence in Meta’s strategic direction.
Meta’s Q1 2025 earnings showcase its resilience, with strong advertising revenue and strategic AI investments driving growth despite tariff challenges. The company’s focus on AI and user engagement positions it well for sustained success in a dynamic market.
