Meta Platforms' Q3 Earnings and Revenues Surpass Estimates, Rise Y/Y

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 BaseRevenues 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/YAdvertising 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 DetailsIn 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 StrongAs 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 GuidanceMeta 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 ConsiderCurrently, 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) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report 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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks