Meta Platforms reported strong Q1 2025 earnings, driven by robust advertising revenue and significant advancements in artificial intelligence (AI). The company posted a 16% year-over-year increase in revenue, totaling $42.31 billion, and a 35% rise in net income to $16.64 billion. Earnings per share reached $6.43, surpassing analyst expectations.
The growth was fueled by a 6% increase in daily active users across Meta’s family of apps—Facebook, Instagram, Messenger, and WhatsApp – reaching 3.43 billion. Ad impressions rose 5%, and the average price per ad increased by 10%, reflecting higher user engagement and improved monetization.
CEO Mark Zuckerberg highlighted the company’s progress in AI, noting that Meta AI now has nearly 1 billion monthly active users. The company is investing heavily in AI infrastructure, with capital expenditures projected between $64 billion and $72 billion for 2025. Meta is also focusing on AI-driven advertising tools, such as the Andromeda machine learning system, which has enhanced ad personalization and performance.
Despite these positive results, Meta faces regulatory challenges. The European Commission recently ruled that Meta’s ad-free subscription model violates the Digital Markets Act, potentially impacting its operations in the EU. The company plans to appeal the decision.
Looking ahead, Meta projects Q2 2025 revenues between $42.5 billion and $45.5 billion. The company remains focused on expanding its AI capabilities and enhancing user experiences across its platforms.
