Meta Platforms Inc., parent company of Facebook, Instagram, and WhatsApp, posted stronger-than-expected first-quarter earnings, lifted by robust advertising revenues and continued momentum in artificial intelligence-powered hardware.
Shares climbed nearly 4 percent in after-hours trading following the report.
Meta posted a 16 percent year-on-year growth in revenue to USD42.31 billion in the January–March period, with advertising revenue matching the growth at USD41.39 billion. Net income jumped 35 percent to USD16.64 billion, signaling sustained strength in its core digital business.
“We’ve had a strong start to an important year,” said CEO Mark Zuckerberg. “Our community continues to grow, and our business is performing very well. We’re also making good progress on Meta AI and smart glasses, with Meta AI now nearing 1 billion monthly active users.”
Meta CFO Susan Li forecast second-quarter revenue between USD42.5 billion and USD45.5 billion, noting a mild 1 percent foreign exchange tailwind. She also revised full-year expense guidance slightly lower, to between USD113 billion and USD118 billion, and lifted 2025 capital expenditure expectations to USD64 billion to USD72 billion, up from the previous USD60 billion to USD65 billion estimate.
“This reflects additional data center investments to support AI development, alongside higher infrastructure hardware costs,” Li said. “The bulk of our capex will still go to our core business.”
Meta’s family of apps saw daily active users rise 6 percent to 3.43 billion in March. Ad impressions increased by 5 percent, while the average price per ad rose 10 percent, underscoring advertiser confidence in Meta’s reach and targeting capabilities.
Despite ongoing losses in its metaverse-focused Reality Labs division, Meta’s results highlight its evolving strength in AI, advertising, and digital infrastructure—key pillars of its growth strategy amid rising competition and regulatory pressure.
