Meta Platforms, Inc. delivered a standout financial performance in the first quarter of 2025, sending its stock surging by more than 5% in after-hours trading.
The company’s robust results, marked by a significant jump in net income and an optimistic outlook for the second quarter, have reinforced investor confidence in Meta’s ongoing growth trajectory.
Meta reported first-quarter revenue of $42.31 billion, a 16% increase from the same period last year. Net income soared to $16.64 billion, up 35% year-over-year, while diluted earnings per share climbed to $6.43 compared to $4.71 in the previous year. These figures not only surpassed analyst expectations but also highlighted the company’s operational efficiency, with the operating margin expanding to 41%.
A major driver behind this performance was Meta’s advertising business, which generated $41.39 billion in revenue, up 16% from the prior year. The company saw a 5% rise in ad impressions and a 10% increase in average ad prices, reflecting strong demand across its platforms, including Facebook, Instagram, Messenger, and WhatsApp.
User engagement also remained robust, with daily active people across Meta’s family of apps reaching 3.43 billion, a 6% increase year-over-year.
Looking ahead, Meta provided a strong sales outlook for the second quarter, projecting revenue between $42.5 billion and $45.5 billion. This guidance slightly exceeds Wall Street’s expectations and signals continued momentum despite macroeconomic uncertainties and new tariff challenges.
CEO Mark Zuckerberg emphasized Meta’s focus on advancing its AI initiatives and expanding its ecosystem, noting significant progress with Meta AI and AI-powered products.
Meta also increased its capital expenditure forecast for 2025, now expecting to invest between $64 billion and $72 billion, primarily in AI infrastructure and data centers. While the Reality Labs division continues to operate at a loss, the core advertising business remains a powerful engine for growth.
With its strong start to 2025, Meta has demonstrated resilience and adaptability, positioning itself as a leader in digital advertising and AI innovation. Investors will be watching closely to see if the company can sustain this momentum in the quarters ahead.