Meta Surpasses Expectations in Q2, Revenue Up 21.6% YoY, Stock Soars

Meta Platforms reported Q2 CY2025 results, beating revenue expectations with sales up 21.6% YoY to $47.52 billion, and GAAP profit of $7.14 per share, 21% above analysts' consensus estimates. The company's revenue guidance for Q3 CY2025 is $49 billion at the midpoint, above analyst estimates. Daily active people reached 3.48 billion, up 210 million YoY.

Meta Platforms Inc. (NASDAQ: META) reported its Q2 CY2025 financial results, exceeding market expectations with sales up 21.6% year-over-year (YoY) to $47.52 billion. The company's earnings per share (EPS) of $7.14 per share were 21% above analysts' consensus estimates, indicating robust performance.

The company's revenue guidance for Q3 CY2025 is $49 billion at the midpoint, surpassing analyst estimates of $46.14 billion. Daily active people reached 3.48 billion, up 210 million YoY, underscoring the platform's continued growth and user engagement [3].

Meta's advertising segment, which accounts for approximately 98% of total revenue, has continued to deliver robust, double-digit growth, with year-over-year increases in the mid- to high teens since early 2024. This growth has been fueled by improved ad targeting, rising pricing power, and continued momentum on platforms like Reels and Instagram [1].

The company's aggressive investment in artificial intelligence (AI) continues to bear fruit. Meta recently launched Meta Superintelligence Labs, an internal unit focused on developing frontier AI models. The company has embarked on a high-profile hiring spree, poaching top talent from OpenAI, Apple, and GitHub with compensation packages reportedly reaching $10 million to $20 million annually, and in some cases, multi-year deals valued at nearly $1 billion [1].

Meta's stock surged 8% in aftermarket trading following the results, with the stock up roughly 50% over the past year. The stock is currently trading around $700, slightly above its 52-week high. Analysts are bullish on the stock, with 25 out of 27 analysts tracked by Visible Alpha rating it a "buy" and assigning a consensus price target of around $755 [1].

Key Takeaways

1. Revenue Growth: Meta's Q2 CY2025 revenue of $47.52 billion represents a 21.6% YoY increase, significantly outperforming analyst estimates.
2. EPS Performance: EPS of $7.14 per share was 21% above analysts' consensus estimates, indicating strong financial performance.
3. Revenue Guidance: Q3 CY2025 revenue guidance of $49 billion at the midpoint exceeded analyst estimates of $46.14 billion.
4. User Engagement: Daily active people reached 3.48 billion, up 210 million YoY, reflecting strong user growth and engagement.
5. AI Investment: Meta's continued investment in AI, including the launch of Meta Superintelligence Labs and high-profile hiring, positions the company for future growth.

Meta Platforms' strong Q2 CY2025 results highlight the company's robust performance in the face of market challenges. Investors should closely monitor the company's earnings call at 5:00 PM Eastern to gain further insights into its AI strategy and future growth prospects.

References

[1] https://globelynews.com/business/meta-q2-2025-earnings-eps/
[2] https://finance.yahoo.com/news/pathward-financial-nasdaq-cash-beats-205034596.html
[3] https://www.investing.com/news/earnings/meta-platforms-surges-in-afterhours-after-delivering-blowout-q2-results-4161082