United States: Meta Platforms has reported mixed financial results for the third quarter of 2025, posting record quarterly revenue but a sharp drop in earnings per share due to a one-time tax charge.
The results, announced, come as the company wraps up a multibillion-dollar hiring spree focused on artificial intelligence talent. The tech giant recorded $51.24 billion in quarterly revenue, surpassing Wall Street estimates and its own projections.
However, earnings per share (EPS) fell to $1.05, well below expectations of $6.70, following a non-cash income tax charge of $15.93 billion. Meta said EPS would have been $7.25 excluding the one-time charge. Meta projected full-year expenses between $116 billion and $118 billion, raising the lower end of its previous range.
Capital expenditures for 2025 are expected to reach $70 billion to $72 billion, up from an earlier forecast of $66 billion to $72 billion. The company anticipates fourth-quarter revenue between $56 billion and $59 billion.
Mark Zuckerberg, Meta’s founder and CEO stated that, “We had a strong quarter for our business and our community. Meta Superintelligence Labs is off to a great start and we continue to lead the industry in AI glasses. If we deliver even a fraction of the opportunity ahead, the next few years will be the most exciting period in our history.”
Rising costs and continued AI investment
Meta’s growing spending on AI infrastructure remains a central theme for investors. Chief Financial Officer Susan Li said on the earnings call that the company will continue to invest aggressively in 2026 to meet expanding computational demands.
Earlier this month, Meta announced a joint venture with Blue Owl Capital to finance and build the $27 billion Hyperion data centre campus in Louisiana, the company’s largest such development.
Li added that 2026 expenses will grow significantly faster than in 2025, driven primarily by infrastructure and cloud costs. Employee compensation will also rise, reflecting full-year pay for new hires, particularly in AI-related roles.
Jesse Cohen, senior analyst at Investing.com, said the report underscores the growing tension between the company’s massive AI infrastructure investments and investor expectations for near-term returns.
Staff changes and product updates
The financial update follows Meta’s decision to lay off 600 employees from its AI unit, part of an effort to streamline the super-intelligence division, which now employs fewer than 3,000 people. Zuckerberg said the reshaped unit has built the highest talent density lab in the industry.
Meta’s stock has steadily climbed over the past six months, with its last two earnings reports exceeding analyst expectations. The company’s new Ray-Ban Display glasses, launched last month, feature a screen embedded in the lenses. However, the division overseeing these smart glasses and virtual reality headsets reported a $4.4 billion loss.
Despite privacy concerns surrounding the new eyewear, Zuckerberg said collaborations with Ray-Ban and Oakley are progressing well and will yield long-term returns.
Advertising accreditation and market outlook
On the advertising front, Meta lost its accreditation from the Media Rating Council (MRC) after withdrawing from the organisation’s annual audit process. The certification had been granted just four months earlier and served as a marker of brand safety standards.
Analysts said the move is unlikely to significantly impact Meta’s advertising business. Meta’s financial results reflect the balancing act between heavy investment in AI and maintaining investor confidence, a tension that will define the company’s next phase of growth.
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