Meta has defied odds in the first quarter of 2025, posting robust earnings despite persistent macroeconomic concerns, including proposed tariffs, rising inflation, and a high-stakes race in AI innovation. The Meta Q1 earnings report confirmed that the social media giant remains a powerhouse, outperforming Wall Street estimates by leveraging its core advertising business and aggressive AI infrastructure investment.
In Q1 2025, Meta reported revenue of $36.46 billion, a year-over-year increase of 27%, and surpassed the consensus estimate of $35.6 billion. Net income surged to $11.58 billion, translating to earnings per share (EPS) of $4.71, compared to $2.20 a year ago. This performance reflects the success of Meta’s AI-powered ad delivery system and its ability to maintain user engagement across platforms like Facebook, Instagram, and WhatsApp.
Meta Q1 Earnings Report
The Meta earnings report delivered upbeat numbers that showcased the company’s operational resilience and strategic clarity. Daily Active People (DAP), a key engagement metric across all Meta platforms, reached 3.24 billion, reflecting a 7% increase year-over-year. Ad impressions rose 20%, while the average price per ad dipped by 6%, signaling both volume growth and pricing flexibility. Notably, Meta’s Family of Apps segment brought in $35.02 billion in revenue, while Reality Labs—its metaverse division—reported a loss of $3.85 billion, underlining the continued high investment in future tech.
During the Meta earnings call, CEO Mark Zuckerberg reaffirmed the company’s commitment to building the next generation of AI products and tools. He stated that their capital expenditures will grow to $35–$40 billion in 2025, up from an earlier estimate of $30–$37 billion, as Meta continues to scale its AI infrastructure. The company also revealed it had over 20 billion daily AI-driven content recommendations across its platforms, a testament to how central AI is becoming to Meta’s strategy.
Meta Stock Update
Following the earnings release, Meta stock initially jumped in after-hours trading, although it ended the day slightly down at $549, reflecting broader tech market jitters. The stock has still gained over 30% year-to-date, and Meta now holds a market capitalization of over $1.44 trillion. Investors seem optimistic about Meta’s long-term prospects, especially given its strong cash flow and leadership in generative AI tools and ad technologies.
Meta Q2 Earnings Outlook
For Q2 2025, Meta offered guidance in the range of $36.5 to $39 billion, in line with analyst expectations. The Meta earnings outlook remains strong, as the company continues to see high advertiser demand and momentum from its AI investments. However, CFO Susan Li cautioned that potential trade tariffs and regulatory developments in the U.S. and EU could influence growth in the second half of the year. Still, with solid fundamentals and a clear AI-first roadmap, Meta appears positioned to sustain its upward trajectory.
