Meta Platforms reported robust double-digit top-line growth in Q3 2025, with notable gains in global user engagement and video monetization year-over-year. Management upgraded forward capital expenditure and expense guidance, citing escalating infrastructure and AI compute requirements as central drivers for 2025 and 2026. Aggressive hiring in technical and AI roles continued, while automation in ads and messaging segments showed expanding adoption and improved advertising efficiency.
The tax rate reached 87% in Q3 2025 due to a one-time noncash reduction in deferred tax assets, with Meta Platforms anticipating a 12%-15% tax rate in Q4. Net income was $2.7 billion, or $1.05 per share as reported, including the tax adjustment. Capital expenditures were $19.4 billion, driven by investments in servers, data centers, and network infrastructure. Free cash flow was $10.6 billion, and shareholder returns included $3.2 billion repurchased in Class A stock and $1.3 billion paid in dividends. Total revenue was $51.2 billion, up 26%, with total expenses at $30.7 billion, up 32% year-over-year, driven primarily by higher legal costs, technical hires, and increased infrastructure operating costs. Operating income was $20.5 billion, with an operating margin of 40%. Employee count was over 78,400, up 8% year-over-year.
In Q3 2025, the Family of Apps revenue was $50.8 billion, up 26% year-over-year, with advertising revenue at $50.1 billion, up 26% or 25% on a constant currency basis. Other revenue within the Family of Apps was $690 million, up 59%, driven by WhatsApp paid messaging and Meta Verified subscriptions. Reality Labs revenue was $470 million, up 74% year-over-year. Consolidated total revenue was $51.2 billion, up 26%, with total expenses at $30.7 billion, up 32% compared to the prior year. The tax rate was 87%, excluding a one-time noncash reduction in deferred tax assets. Free cash flow was $10.6 billion, with $44.4 billion in cash and marketable securities and $28.8 billion in debt on hand.
Meta Platforms anticipates total revenue in the range of $56 billion to $59 billion for Q4 2025, with approximately a 1% FX tailwind. The 2025 expense outlook was updated to $116 billion to $118 billion, reflecting a 22%-24% growth rate, up from the previous outlook of $114 billion to $118 billion. The 2025 CapEx outlook was raised to $70 billion to $72 billion from $66 billion to $72 billion. In 2026, CapEx dollar growth is expected to be notably larger, with total expenses growing at a significantly faster percentage rate driven by infrastructure costs, employee compensation, and increased cloud expenses and depreciation. AI and ads automation metrics showed promising results, with AI-powered ad tools surpassing a $60 billion annual run rate.
Product engagement metrics revealed increased time spent on Facebook and Threads, with video time spent on Instagram up over 30% year-over-year. New products like Vibes and the Meta AI creation tools showed strong growth and adoption. The focus on AI advancements, infrastructure investments, and new products and services underlines Meta’s commitment to sustained growth, improved user engagement, and enhanced advertising efficiency. The company’s strategic priorities in AI, hardware development, and innovative products position it for continued success and value creation.
Read more at Nasdaq: Meta Platforms (META) Q3 2025 Earnings Call Transcript