Meta Platforms' Q2 Earnings and Revenues Surpass Estimates, Rise Y/Y

Meta Platforms META reported second-quarter 2025 earnings of $7.14 per share, beating the Zacks Consensus Estimate by 22.5%. The figure surged 38.4% year over year.

Revenues of $47.52 billion beat the Zacks Consensus Estimate by 5.96% and increased 21.6% year over year. At constant currency (cc), revenues soared 22% year over year.

META’s Top-Line Growth Rides on Strong User Base

Revenues from Family of Apps (99.2% of total revenues), which includes Facebook, Instagram, Messenger, WhatsApp and other services, increased 21.8% year over year to $47.15 billion.

Family Daily Active People or DAP, defined as a registered and logged-in user who visited at least one of the Family products (Facebook, Instagram, Messenger and/or WhatsApp) on a given day, was 3.48 billion, up 6.4% year over year.
 

Meta Platforms, Inc. Price, Consensus and EPS Surprise

Meta Platforms, Inc. price-consensus-eps-surprise-chart | Meta Platforms, Inc. Quote

Geographically, revenues from the United States & Canada, Asia-Pacific, Europe and the Rest of the World (RoW) surged 21%, 18.7%, 24% and 24% on a year-over-year basis, respectively.

META’s Advertising Revenues Jump Y/Y

Advertising revenues (98.8% of Family of Apps revenues) increased 21.5% year over year to $46.56 billion and accounted for 98% of second-quarter revenues. At cc, revenues increased 22% year over year.

Advertising revenues from the United States & Canada, Asia-Pacific, Europe and the RoW surged 20.8%, 18.5%, 24.4% and 23% on a year-over-year basis, respectively.

Ad impressions delivered across Family of Apps increased 11% year over year, and the average price per ad jumped 9% in the reported quarter. Impression growth from Asia-Pacific, the RoW, the United States & Canada and Europe was 16%, 7%, 9% and 6%, respectively.

Family of Apps’ other revenues soared 50% year over year to $583 million.

Reality Labs’ revenues (0.8% of total revenues) increased 4.8% year over year to $370 million.

META Expands Operating Margin Driven By Lower Costs

In the second quarter of 2025, total costs and expenses increased 11.8% year over year to $27.08 billion. As a percentage of revenues, total costs and expenses were 57%, down 500 basis points (bps) year over year. 

In the reported quarter, Family of Apps expenses were $22.2 billion, accounting for 82% of Meta Platforms’ overall expenses. FoA expenses were up 14% year over year, primarily due to higher infrastructure and headcount-related costs. 

Reality Labs’ expenses were $4.9 billion, up 1% year over year.

As a percentage of revenues, marketing & sales expenses decreased 70 basis points (bps), while general & administrative expenses fell 380 bps on a year-over-year basis.

Research & development expenses, as a percentage of revenues, were 22.8%, up 30 bps on a year-over-year basis.

Meta Platforms’ employee base was 75,945 at the end of the second quarter, up 7% year over year.

Operating income of $20.44 billion jumped 37.7% year over year. The operating margin was 43%, expanding 500 bps year over year.

Family of Apps’ operating income surged 29.1% year over year to $25 billion. Reality Labs reported a loss of $4.53 billion compared with the year-ago quarter’s loss of $4.49 billion.

META’s Balance Sheet & Cash Flow Remains Strong

As of June 30, 2025, cash & cash equivalents and marketable securities were $47.07 billion compared with $70.23 billion as of March 31, 2025.

Long-term debt was $28.83 billion as of June 30, 2025, unchanged from the figure reported as of March 31, 2025. 

Capital expenditures were $17.01 billion in the second quarter, while free cash flow was $8.55 billion.

META Offers Positive Guidance

Meta Platforms expects total revenues between $47.5 billion and $50.5 billion for the third quarter of 2025, including 1% tailwind from favorable forex. The company expects the year-over-year growth rate in the fourth quarter of 2025 to be slower than the third quarter.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $43.33 billion, indicating 10.9% growth from the figure reported in the year-ago quarter. The consensus estimate for earnings is pegged at $5.49 per share, suggesting 6.4% growth from the figure reported in the year-ago quarter. 

For 2025, META anticipates total expenses between $114 billion and $118 billion (narrowed from the prior outlook $113-$118), indicating a growth rate of 20-24% year over year. 

META expects 2025 capital expenditure to be in the range of $66-$72 billion.

Zacks Rank & Other Stocks to Consider

Currently, Meta Platforms carries a Zacks Rank #2 (Buy). 

Arista Networks ANET, Bumble BMBL and DoorDash DASH are some other top-ranked stocks in the broader Zacks Computer & Technology sector. Each of the three stocks sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks is scheduled to report its second-quarter 2025 results on Aug. 5. Both Bumble and DoorDash are scheduled to report their respective second-quarter 2025 results on Aug. 6.

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This article originally published on Zacks Investment Research (zacks.com).

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