Meta Platforms META reported third-quarter 2025 non-GAAP earnings of $7.25 per share, beating the Zacks Consensus Estimate by 9.68%. GAAP earnings of $1.05 per share fell 82.6% year over year.
Revenues of $51.24 billion beat the Zacks Consensus Estimate by 3.63% and increased 26.2% year over year. At constant currency (cc), revenues soared 25% year over year.
META’s Top-Line Growth Rides on Strong User Base
Revenues from Family of Apps (99.1% of total revenues), which includes Facebook, Instagram, Messenger, WhatsApp and other services, increased 26% year over year to $50.77 billion.
Family Daily Active People or DAP, defined as a registered and logged-in user who visited at least one of the Family products (Facebook, Instagram, Messenger and/or WhatsApp) on a given day, was 3.54 billion, up 7.6% year over year.
Meta Platforms, Inc. Price, Consensus and EPS Surprise
Meta Platforms, Inc. price-consensus-eps-surprise-chart | Meta Platforms, Inc. Quote
Geographically, revenues from the United States & Canada, Asia-Pacific, Europe and the Rest of the World (RoW) surged 23.5%, 25%, 29.2% and 31.9% on a year-over-year basis, respectively.
AI recommendation systems are delivering higher quality and more relevant content, which led to 5% more time spent on Facebook in the reported quarter and 10% on Threads. Video time spent on Instagram increased more than 30% year over year. Reels now has an annual run rate of more than $50 billion.
META’s Advertising Revenues Jump Y/Y
Advertising revenues (98.6% of Family of Apps revenues) increased 25.6% year over year to $50.08 billion and accounted for 97.7% of second-quarter revenues. At cc, revenues increased 25% year over year.
Advertising revenues from the United States & Canada, Asia-Pacific, Europe and the RoW surged 22.7%, 24.5%, 29% and 30.9% on a year-over-year basis, respectively.
Ad impressions delivered across Family of Apps increased 14% year over year, and the average price per ad jumped 10% in the reported quarter. Impression growth from Asia-Pacific, the RoW, the United States & Canada and Europe was 23%, 9%, 8% and 9%, respectively.
Family of Apps’ other revenues soared 59% year over year to $690 million. Reality Labs’ revenues (0.9% of total revenues) jumped 74.1% year over year to $470 million.
META's Operating Details
In the third quarter of 2025, total costs and expenses increased 32.1% year over year to $30.71 billion. As a percentage of revenues, total costs and expenses were 59.9%, up 270 basis points (bps) year over year.
As a percentage of revenues, marketing & sales expenses decreased 140 bps, while general & administrative expenses increased 230 bps on a year-over-year basis. Research & development expenses, as a percentage of revenues, were 29.6%, up 200 bps on a year-over-year basis.
Meta Platforms’ employee base was 78,450 at the end of the third quarter, up 8% year over year.
Operating income of $20.54 billion jumped 18.4% year over year. The operating margin was 40.1%, which contracted 270 bps year over year. Family of Apps’ operating income increased 14.6% year over year to $25 billion. Reality Labs reported a loss of $4.43 billion, unchanged year over year.
META’s Balance Sheet Remains Strong
As of Sept. 30, 2025, cash & cash equivalents and marketable securities were $44.45 billion compared with $47.07 billion as of June 30, 2025.
Long-term debt was $28.83 billion as of Sept. 30, 2025, unchanged from the figure reported as of June 30, 2025.
Capital expenditures were $19.37 billion in the third quarter, while free cash flow was $10.63 billion.
META Offers Positive Guidance
Meta Platforms expects total revenues between $56 billion and $59 billion for the fourth quarter of 2025, including 1% tailwind from favorable forex. The company expects continued strong ad revenue growth but lower Reality Labs revenues.
For 2025, META anticipates total expenses between $116 billion and $118 billion (narrowed from the prior outlook $114-$118), indicating a growth rate of 22-24% year over year. For 2026, total expenses are expected to grow at a much faster rate.
META expects 2025 capital expenditure to be in the range of $70-$72 billion (up from previous guidance between $66-$72 billion). For 2026, Meta Platforms expects capital expenditures to increase significantly.
Zacks Rank & Other Stocks to Consider
Currently, Meta Platforms carries a Zacks Rank #2 (Buy).
Cirrus Logic CRUS, Fair Isaac FICO, and CoreWeave CRWV are some other top-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector.
Cirrus Logic shares have returned 31.9% year to date. CRUS is scheduled to release second-quarter fiscal 2026 results on Nov. 4. Cirrus Logic sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Fair Isaac shares have dropped 21.3% year to date. This Zacks Rank #1 company is scheduled to release fourth-quarter fiscal 2025 results on Nov. 5.
CoreWeave shares have surged 249.9% since its initial public offering. CRWV is set to report its third-quarter 2025 results on Nov. 10. CoreWeave currently has a Zacks Rank #2 (Buy).
Zacks' Research Chief Picks Stock Most Likely to "At Least Double"
Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.
See Our Top Stock to Double (Plus 4 Runners Up) >>Cirrus Logic, Inc. (CRUS) : Free Stock Analysis Report
Fair Isaac Corporation (FICO) : Free Stock Analysis Report
Meta Platforms, Inc. (META) : Free Stock Analysis Report
CoreWeave Inc. (CRWV) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
