Meta reports $51.2 bn in Q3 with ad impressions up 14% YOY

Meta Platforms reported third-quarter 2025 revenue of $51.24 billion, up 26% from $40.59 billion a year earlier, driven by strong ad sales and user growth across its apps. However, net income dropped sharply due to a one-time tax charge linked to recent U.S. tax legislation.

Advertising continued to fuel growth, with ad impressions up 14% year-on-year and the average price per ad increasing by 10%. Daily active users across Meta’s family of apps, including Facebook, Instagram, and WhatsApp, averaged 3.54 billion in September, an 8% rise from last year.

“We had a strong quarter for our business and our community,” said Mark Zuckerberg, Meta founder and CEO. “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, then the next few years will be the most exciting period in our history.”

The company’s operating income rose 18% to $20.54 billion, though its operating margin slipped to 40% from 43% last year. Net income fell 83% to $2.71 billion, while diluted earnings per share declined to $1.05 from $6.03. The company attributed the steep decline to a one-time, non-cash income tax charge of $15.93 billion arising from the implementation of the One Big Beautiful Bill Act.

Excluding this charge, the company said its effective tax rate would have been 14% instead of 87%, and net income would have increased to $18.64 billion, with adjusted EPS at $7.25.

Total costs and expenses climbed 32% to $30.71 billion, reflecting increased spending on AI development and infrastructure. Headcount rose 8% year-on-year to 78,450 employees.

Looking ahead, the company expects fourth-quarter 2025 revenue between $56 billion and $59 billion, with full-year expenses projected at $116-118 billion. Capital spending for the year is now estimated between $70 billion and $72 billion, up from earlier projections.

The company said it plans to invest heavily in infrastructure and AI capacity next year, which will likely lead to higher capital and operating expenses in 2026. It also warned of regulatory challenges in the EU and U.S., noting that ongoing investigations and youth-related lawsuits could affect future financial results.