HomeMarket NewsAnticipating Meta's Q4 2025 Earnings: Key Insights and Projections

Anticipating Meta’s Q4 2025 Earnings: Key Insights and Projections

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Meta Platforms Expected to Shine in Q4 Earnings Report

As Meta Platforms, Inc. prepares to release its Q4 earnings, analysts predict strong growth in profits, highlighting the company’s potential in the tech industry.

Based in Menlo Park, California, Meta Platforms, Inc. (META) is a dominant force in technology and social connectivity. With a market capitalization of $1.5 trillion, the company operates in various areas, including social media, virtual reality, and digital advertising. Meta is set to announce its earnings for Q4 after the market closes on Wednesday, Jan. 29.

Analysts forecast that Meta will report earnings of $6.76 per share, marking a 26.8% increase from $5.33 per share in the same quarter last year. The company has a strong track record, consistently outperforming Wall Street’s earnings per share (EPS) expectations over the last four quarters. The reported EPS of $6.03 in the last quarter exceeded estimates by 16.2%. This earnings success is attributed to robust advertising revenue driven by AI tools; however, concerns persist regarding declining user numbers and rising infrastructure costs.

Looking ahead, analysts anticipate a substantial rise in Meta’s EPS to $22.68 in fiscal 2024, a 52.5% increase from $14.87 in 2023. Furthermore, estimates project an 11.2% annual climb to $25.21 in fiscal 2025.

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Over the past year, shares of Meta have surged by 62.4%, significantly outperforming both the S&P 500 Index’s ($SPX) 22% growth and the Communication Services Select Sector SPDR ETF Fund’s (XLC) gains of 29.9% during the same timeframe.

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On Oct. 30, shares of META closed slightly lower following the report of Q3 results, which revealed revenue of $40.59 billion, meeting analyst expectations with an 18.9% year-over-year increase. Meta’s EBITDA for the quarter stood at $25.63 billion, exceeding expectations by 6.5%. For Q4 of CY2024, the company projects a revenue of $46.5 billion, aligning with analyst forecasts. Meta also reported improvements in profitability, with the operating margin increasing to 42.7% from 40.3% last year, and the EBITDA margin rising to 63.1%. Additionally, the free cash flow margin surged to 38.2%, compared to 28.7% from the previous quarter.

The consensus among analysts for META stock remains positive, earning an overall “Strong Buy” rating. Among the 51 analysts covering the stock, 43 recommend a “Strong Buy,” two favor a “Moderate Buy,” four suggest a “Hold,” and two advise a “Strong Sell.” The average analyst price target is set at $667.58, indicating a potential upside of 9.7% from current levels.


On the date of publication,

Rashmi Kumari

did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please view the Barchart Disclosure Policy

here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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