Meta's AI Fuels Growth

Meta has reported Q2 2025 results that exceeded expectations, driven by a surge in ad revenue and increased user engagement. The company's revenue reached $47.52 billion, a 22% increase year-over-year. This growth is attributed to Meta's heavy investments in AI, which have enhanced content recommendations and driven user activity across Facebook and Instagram. Daily active people across Meta's platforms reached 3.48 billion in June, a 6% increase from the previous year. Ad impressions also saw an 11% increase, with the average ad price rising by 9%.

Despite significant capital expenditure, which reached $17.01 billion for the quarter, Meta's net income was $18.34 billion, or $7.14 per share. The company anticipates Q3 2025 revenue to be between $47.5 billion and $50.5 billion. Meta is increasing its focus on AI, with plans to invest between $66 billion and $72 billion in capital expenditure for 2025. This includes building a 2GW+ data centre and expanding its AI teams.

Looking ahead, Meta expects total expenses for 2025 to range from $114 billion to $118 billion. While still in the early stages of planning for 2026, the company anticipates upward pressure on expenses, primarily due to infrastructure costs and employee compensation for technical talent. CEO Mark Zuckerberg has expressed excitement about building personal superintelligence, with the goal of empowering individuals.