Meta's Q2 Revenue Surges 22% to 475.2 Billion Dollars, Stock Jumps 11.5%

Meta, the parent company of Facebook, Instagram, and WhatsApp, released its second-quarter financial report, revealing a significant surge in revenue, profit, and future outlook, which exceeded market expectations. The company's stock price rose by 11.5% in post-market trading. The report highlighted that Meta's second-quarter revenue reached 475.2 billion dollars, marking a 22% year-on-year increase, while net profit soared by 36% to 183.4 billion dollars. The company's earnings per share stood at 7.14 dollars, surpassing the anticipated 5.92 dollars and showing a 38% year-on-year growth.

Meta's strong performance was largely driven by its advertising business, which generated 465.6 billion dollars in revenue, exceeding market predictions of 439.7 billion dollars. The company's artificial intelligence technology was credited with enhancing the efficiency and profitability of its advertising system. Additionally, Meta's Reality Labs, which focuses on virtual and augmented reality technologies, reported sales of 3.7 billion dollars for the quarter, with an operating loss of 45.3 billion dollars, which was lower than expected.

The number of daily active users across Meta's suite of applications reached 3.48 billion, surpassing analyst estimates of 3.45 billion. This figure represents an increase from the previous quarter's 3.43 billion. The company's total costs and expenses for the second quarter amounted to 270.8 billion dollars, reflecting a 12% year-on-year increase. Meta did not provide a specific outlook for the fourth quarter but indicated that the year-on-year growth rate for that period would be lower than the third quarter due to a stronger growth period in the fourth quarter of 2024.

Meta's capital expenditure for the year is projected to be between 660 billion dollars and 720 billion dollars, with the lower end of the range increased from the previous estimate of 640 billion dollars to 720 billion dollars. The company's total expenses for 2025 are anticipated to range from 1140 billion dollars to 1180 billion dollars. The intense competition for talent in Silicon Valley has led to a significant increase in personnel costs, with compensation related to hiring becoming the second-largest growth driver. These factors are expected to result in a higher year-on-year expense growth rate in 2026 compared to 2025.

In June, Meta invested 143 billion dollars in Scale AI, sparking a wave of AI hiring. The company appointed Alexander Wang, the CEO of Scale AI, as its Chief AI Officer to lead the newly established Meta Superintelligence Lab. During the earnings call, the financial officer discussed Meta's investment in Scale AI and related AI expenditures, noting that the company made 151 billion dollars in non-cash equity investments during the second quarter, including its minority stake in Scale AI and other investment activities.

Beyond the impressive financial results, the CEO outlined a vision for "personal superintelligence," emphasizing that advanced technology should empower individuals rather than focus solely on automation and efficiency. The CEO described superintelligence as a system that enhances creativity, fosters cultural and community development, and strengthens human connections, ultimately leading to a more fulfilling life. The CEO also noted that Meta's AI systems have begun to show signs of self-improvement, albeit at a slow pace, and that the development of superintelligence, defined as AI surpassing human intelligence in all aspects, is now within reach.