Meta sees Q3 revenue above estimates, AI drives growth

Meta Platforms forecast third-quarter revenue between US$47.5 billion and US$50.5 billion, beating the US$46.15 billion estimate.

Second-quarter revenue reached US$47.5 billion, above the US$44.8 billion forecast.

Profit per share was US$7.1, also topping the expected US$5.9.

The company credited AI for driving growth in its core ad business. CEO Mark Zuckerberg said AI is enabling significant improvements in ad operations.

Meta raised its annual capital expenditure forecast to US$66 billion US$72 billion, citing higher spending on data centers and employee compensation.

Meta expects slower year-over-year revenue growth in the fourth quarter. It also continues to face regulatory scrutiny, with US antitrust regulators pursuing a case over its Instagram and WhatsApp acquisitions.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Big tech’s AI spending has reached unprecedented scale in 2025

Meta’s increased capital expenditure forecast to $66-72 billion represents just one piece of an industry-wide spending surge that surpasses previous technology investments.

Major tech companies are projected to invest a combined $320 billion on AI technologies and data center buildouts in 2025, up from $230 billion in 20241.

Microsoft alone plans to spend a record $30 billion this quarter on AI investments, while Amazon is projected to allocate over $100 billion primarily for AI in its AWS division1.

This collective spending of over $320 billion in a single year exceeds the GDP of many countries and represents one of the largest coordinated technology investments in corporate history.

The scale suggests these companies view AI not as an experimental venture but as fundamental infrastructure requiring immediate, massive capital deployment to maintain competitive positioning.

2️⃣ Markets are rewarding AI investment announcements with immediate valuation increases

Meta’s earnings report triggered a $152 billion increase in its market value, while Microsoft gained $288 billion, contributing to a combined $648 billion rally in AI stocks2.