Meta Q2 Earnings Exceed Expectations, Stock Surges 10%

Meta Platforms' stock surged 10% after Q2 earnings, beating expectations on both top and bottom lines. The company's revenue gains came despite a backdrop of tech firms increasing hiring and spending.

Meta Platforms (NASDAQ: META) reported its second-quarter earnings on July 30, 2025, after the market close, which saw its stock surging by 10%. The company's revenue and earnings per share (EPS) both exceeded analyst expectations, highlighting its strong performance despite a challenging macroeconomic environment.

Key Financial Highlights

- Revenue: Meta Platforms' revenue for Q2 2025 was $47.52 billion, a 21.6% year-over-year increase, surpassing the Wall Street consensus of $44.84 billion. This growth was driven by robust ad spending across its Family of Apps, which includes Facebook, Instagram, and WhatsApp [1].
- EPS: The company's EPS of $7.14 was $1.24 higher than the expected $5.90, reflecting strong profitability [1].
- Daily Active People (DAP): The average number of daily active people (DAP) on Meta's platforms reached 3.48 billion in June 2025, up by 6% year-over-year, underscoring the company's continued user growth [1].
- Ad Impressions: Ad impressions delivered across Meta's apps increased by 11% year-over-year, further fueling revenue growth [1].

Stock Performance and Analyst Sentiment

Following the earnings report, Meta's stock price surged by 10%, reaching a new high. Analysts have been bullish on the company, with many raising their price targets. For instance, Benchmark, KeyBanc, and Bernstein all increased their price targets to $800, $800, and $775, respectively, while maintaining their "Buy" and "Overweight" ratings [2].

Future Outlook

Meta Platforms expects its total revenue for the third quarter of 2025 to range between $47.5 billion and $50.5 billion, with a guidance of 21% year-over-year growth. The company also expects its full-year 2025 expenses to be in the range of $114 billion to $118 billion, reflecting a growth rate of 20% to 24% year-over-year [1].

Challenges Ahead

Despite the positive earnings report, Meta faces several challenges, including ongoing legal issues and regulatory scrutiny. In 2025, the company faced claims of undermining U.S. national security by briefing Chinese officials on emerging technologies like AI and was penalized by the European Union for breaching antitrust rules [2].

Conclusion

Meta Platforms' Q2 earnings report underscores the company's resilience and strong performance in the face of a challenging economic environment. The stock's 10% surge reflects investor confidence in the company's ability to sustain growth and profitability. However, the company will need to navigate ongoing regulatory challenges and maintain its focus on AI investments to continue its upward trajectory.

References

[1] Meta Platforms press release (NASDAQ:META): Q2 GAAP EPS of $7.14 beats by $1.24. Revenue of $47.52B (+21.6% Y/Y) beats by $2.68B. Shares +8%. Family daily active people (DAP) – DAP was 3.48 billion on average for June 2025, an increase of 6% year-over-year. Ad impressions – Ad impressions delivered across our Family of Apps increased by 11% year-over-year. Average price per ad – Average price per ad increased by 9% year-over-year. Headcount – Headcount was 75,945 as of June 30, 2025, an increase of 7% year-over-year. We expect third quarter 2025 total revenue to be in the range of $47.5-50.5 billion vs. $44.84B consensus. Our guidance assumes foreign currency is an approximately 1% tailwind to year-over-year total revenue growth, based on current exchange rates. While we are not providing an outlook for fourth quarter revenue, we would expect our year-over-year growth rate in the fourth quarter of 2025 to be slower than the third quarter as we lap a period of stronger growth in the fourth quarter of 2024. We expect full year 2025 total expenses to be in the range of $114-118 billion, narrowed from our prior outlook of $113-118 billion and reflecting a growth rate of 20-24% year-over-year. More on Meta Platforms  Tech Titans' AI Strategy Meta Report? - The Real Story Isn't In The Numbers Meta: Q2 Earnings Could Bring Another CapEx Increase Surge AI seeks $1B in funding round after Meta's mega investment in rival: report Meta faces Italian regulator's probe over AI service in WhatsApp

[2] Meta Platforms' stock price prediction and forecast 2025-2030. 24/7 Wall St. Published: July 30, 2025 10:15 am