Meta Platforms (NASDAQ: META) delivered a blockbuster earnings report for the second quarter of 2025, solidifying its position as both a tech titan and a serious contender in the AI arms race. The company reported earnings that easily beat Wall Street expectations, sent its stock soaring in after-hours trading, and showcased how its massive AI investments are starting to yield tangible returns.
Let’s unpack what this quarter revealed — from key financials and stock movement to the broader strategic picture.
A Blowout Quarter: Revenue and EPS Soar
Meta reported Q2 revenue of $47.5 billion, marking a 22% increase year-over-year. Earnings per share (EPS) came in at $7.14, comfortably beating consensus estimates of $5.90. For context, analysts had projected revenue around $44.8 billion, meaning Meta overshot that by nearly $3 billion — a substantial beat in today’s market.
User growth remained solid as well. The company’s family of apps — including Facebook, Instagram, WhatsApp, and Messenger — reached 3.48 billion daily active users (DAP), a 6% increase year-over-year and slightly above forecasts. These numbers underscore Meta’s continued dominance in global social connectivity.
Meanwhile, expenses rose to $27.08 billion, up 12% from Q2 2024, largely driven by rising infrastructure and AI-related costs. Meta’s Reality Labs division — which oversees VR, AR, and metaverse projects — posted an operating loss of $4.5 billion, a touch better than the projected $4.8 billion.
| Metric | Q2 2025 | YoY Change | Analyst Estimate |
|---|---|---|---|
| Revenue | $47.5 billion | +22% | $44.8 billion |
| EPS | $7.14 | N/A | $5.90 |
| Daily Active Users | 3.48 billion | +6% | 3.45 billion |
| Total Costs & Expenses | $27.08 billion | +12% | N/A |
| Reality Labs Loss | $4.5 billion | N/A | $4.8 billion |
AI Front and Center: Meta Bets Big on Intelligence
Mark Zuckerberg made it clear during the earnings call: Meta is all-in on AI. “We’ve had a strong quarter both in terms of our business and community,” he said. “I’m excited to build personal superintelligence for everyone in the world.”
Meta’s ambitions go well beyond incremental improvements to its products. The company is targeting nothing less than artificial general intelligence (AGI). And it’s putting its money where its mouth is.
In June 2025, Meta announced a $14.3 billion investment in Scale AI, acquiring a 49% non-voting stake in the data labeling giant. This strategic move is expected to turbocharge Meta’s ability to train and deploy next-gen AI models. In a surprise twist, Scale AI CEO Alexandr Wang has joined Meta to co-lead its new “Superintelligence Labs” division — a move that sent strong signals to both the market and competitors.
The results are already starting to show. Meta AI, the company’s in-house assistant, has now crossed 1 billion monthly active users as of May 2025. It’s integrated deeply into Meta’s platforms and is helping drive smarter ad targeting — a major revenue lever. Simply put, Meta’s AI is no longer just experimental tech — it’s a central growth engine.
Stock Skyrockets: Wall Street Likes What It Sees
Meta’s stock surged more than 10% in after-hours trading following the earnings announcement, closing at $781.50. That’s a 32.5% jump from where it started the year — $589.72 on January 2, 2025.
The market’s reaction wasn’t just about beating earnings estimates — it was about belief. Meta’s forward guidance for Q3 revenue, projected between $47.5 billion and $50.5 billion, came in well above Wall Street expectations of $46.2 billion. Investors are clearly buying into the narrative that Meta’s AI investments will fuel long-term returns.
What’s Next: Capital, Confidence, and Caution
Looking ahead, Meta is putting its foot on the gas. Capital expenditures for 2025 are now projected at $66–72 billion, up slightly from earlier forecasts. Much of that spending will go toward building out AI infrastructure and expanding its Superintelligence Labs division.
Zuckerberg’s long-term AGI vision is ambitious — perhaps even audacious. But with over $77.8 billion in cash reserves (as of Dec. 2024) and a cash-generating ad business, Meta is uniquely positioned to take bold bets. Free cash flow remains strong, giving the company room to absorb the short-term burn from Reality Labs and AI R&D.
There are still risks — regulatory scrutiny, escalating AI competition, and ongoing losses from metaverse initiatives — but for now, Meta appears to have found a rare balance: massive scale, accelerating innovation, and a loyal user base.
Bottom Line
Meta’s Q2 2025 earnings confirm one thing: the company isn’t just surviving in the AI era — it’s thriving. With record-breaking user numbers, a booming ad business, and a bold push into AGI, Meta is staking its future on intelligence — both artificial and strategic.
If the past quarter is any indication, that bet is starting to pay off.