Meta Platforms (META) Reports Strong Q3 2025 Earnings with Cost Growth Ahead
Earnings Release Date: October 29, 2025
Key Points
- Revenue: $40.35B (+22% YoY)
- Net Income: $12.59B (vs $11.58B)
- GAAP EPS: $4.69 (vs $4.39), +7% YoY
- Operating Margin: 40% (down from 41%)
- Ad Revenue: $38.1B, +21% YoY
- Reality Labs Revenue: $407M (flat YoY); Operating Loss: –$3.6B
- Headcount: 68,530 (down 13% YoY)
Stock Reaction: Not disclosed in the release
Quarter Highlights
- Ad Revenue: Strong double-digit growth across all regions, led by Asia-Pacific (+28%) and Rest of World (+36%).
- Family of Apps (FoA): Operating income $19.5B with 45% margin.
- Reality Labs: Continued investment drag with 3.6B quarterly loss.
- Daily Active People (DAP): 3.2 billion (+7% YoY)
Capital Expenditures and Outlook
- Q3 CapEx: $19.37B — nearly double YoY, reflecting accelerated investment in AI compute and infrastructure.
- FY25 CapEx Guidance (Raised): $70–$72B (from prior $66–$72B range)
- FY26 Early CapEx Outlook: Meta expects CapEx to grow notably faster than in 2025, driven by:
- AI compute demand exceeding prior expectations
- Internal infrastructure build-out
- Higher third-party cloud contracts
Expense Outlook (2026)
- Total expenses to grow at a faster rate than in 2025.
- Primary drivers:
- Infrastructure costs, including depreciation and cloud services
- Compensation for AI hires, including engineers and infrastructure talent
Financial Summary
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|---|---|---|---|
| Revenue | $40.35B | $33.67B | +22% |
| Net Income | $12.59B | $11.58B | +9% |
| GAAP EPS | $4.69 | $4.39 | +7% |
| Operating Income | $16.1B | $13.75B | +17% |
| Operating Margin | 40% | 41% | –100 bps |
| CapEx | $19.37B | $10.96B | +77% |
| FoA Revenue | $39.88B | $32.72B | +22% |
| Reality Labs Loss | –$3.6B | –$3.7B | ∼flat |
About Meta
Meta Platforms (NASDAQ: META) builds technology that helps people connect. Its Family of Apps includes Facebook, Instagram, Messenger, and WhatsApp. It is also developing immersive experiences and infrastructure through Reality Labs and advancing artificial intelligence to support products and platforms across the business.
Key Takeaways
- Ad strength intact: Core FoA ad revenue saw consistent double-digit gains across all major regions.
- Massive CapEx surge: Q3 CapEx jumped 77% YoY as Meta ramps up AI infrastructure.
- FY26 setup: Meta telegraphed further cost expansion next year, focused on compute scale and AI hiring.
- Margins stable for now: Despite higher spend, operating margin held near 40%, but future compression possible.
- Reality Labs drag: Metaverse unit remains a multibillion-dollar loss center.
Meta is entering an investment-heavy cycle to support its AI ambitions, with 2026 expected to show even larger infrastructure and compensation costs.