Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide.
Meta Platforms (the parent company of Facebook, Instagram, and WhatsApp) posted better-than-expected earnings for the March quarter, showing strong momentum in advertising and a clear commitment to long-term growth through artificial intelligence (AI).
Revenue came in at USD 42.3 billion for the quarter, up 16% from a year ago and ahead of the forecast USD 41.4 billion. Earnings per share surged to USD 6.43, a 37% jump year-on-year, comfortably beating the USD 5.25 consensus. These results pushed Meta’s share price up more than 6% in after-hours trading.
The company’s advertising business, which accounts for 98% of its revenue, remains its powerhouse. Advertising revenue hit USD 41.4 billion, supported by a 10% rise in the average price per ad, even though total ad impressions grew more modestly at 5%. Meta’s platforms reached 3.43 billion daily users across its family of apps, a 6% annual increase.
Meta’s first-quarter operating margin rose to 41%, up from 38% a year earlier. Operating income surged to USD 17.6 billion, with its core social media business delivering most of that profit. Reality Labs, Meta’s division focused on the metaverse, continues to post losses, USD 4.2 billion this quarter, but those were narrower than expected.
Meta is leaning heavily into AI to drive the next phase of growth. Whether it’s improving ad targeting or launching new consumer-facing tools like the Meta AI app, AI is now central to the company’s strategy. Capital expenditure is expected to increase significantly, with Meta forecasting up to USD 72 billion in full-year spending, up from its prior range of USD 60-65 billion. This includes new data centres and more infrastructure to support AI models and services.
This aggressive investment signals confidence. The company sees opportunities to monetise AI not only through better ads, but also via standalone apps and developer APIs. Meta’s Llama AI models, already downloaded over a billion times, are part of this push.
Despite a volatile global backdrop, including tariff tensions and shifting US policy, Meta’s performance shows resilience. Like other digital advertisers, it’s somewhat insulated from direct tariff effects, but economic pressure can still weigh on advertisers’ budgets. So far, that hasn’t been the case—if anything, concerns about rivals like TikTok and regulatory uncertainty may have helped support ad prices.
Meta’s forecast for the current quarter suggests further growth ahead, with projected revenue between USD 42.5 billion and USD 45.5 billion. That’s in line with market expectations and signals that the company is holding its ground even as other tech firms tread carefully.
For everyday investors, the takeaway is simple: Meta is showing strong financial health, a growing user base, and a willingness to invest boldly in its future, particularly in AI. While risks remain, the business continues to generate solid profits while building for what’s next.
