Key Updates on Meta Platforms’ Q3 Performance
Meta Platforms (NASDAQ: META) reported a 26% year-over-year revenue increase, reaching $51.2 billion for Q3 2025, up from 16% and 22% growth in previous quarters. Advertising continued to dominate, contributing approximately 98% of total revenue. Daily active users rose by 8% to over 3.5 billion, with ad impressions increasing by 14% and the average price per ad climbing 10%.
Despite robust revenue, operating income rose only 18% to $20.5 billion, while costs jumped 32%, leading to a decline in operating margin from 43% to 40%. Capital expenditures for the quarter were reported at $19.4 billion, down from $15.5 billion year-over-year, resulting in free cash flow of $10.6 billion. Looking forward, Meta’s 2025 capital spending outlook was raised to $70-$72 billion due to increased investments in AI infrastructure.
Following these announcements, Meta’s stock saw a 6% increase, with analysts maintaining a buy rating and a price target of $910, suggesting over 40% upside from its current trading price of approximately $648. The stock trades at about 22 times forward earnings, reflecting investor caution amid heavy spending despite the company’s strong revenue growth.
