Meta (META) kicked off 2025 with a strong first quarter, delivering better-than-expected financial results and signaling continued momentum in its AI initiatives and core advertising business.

The company reported first-quarter revenue of $42.31 billion, marking a 16% year-over-year increase. Net income surged to $16.64 billion, up 35% from the same period last year, while earnings per share rose 37% to $6.43. That’s better than consensus estimates, which had pegged Meta’s first-quarter 2025 earnings per share (EPS) at $5.21 and a 13% rise in revenue to $41.2 billion.

The rosy results drove Meta shares up more than 5% in after-hours trading.

CEO Mark Zuckerberg said the quarter was a “strong start to an important year.”

He pointed to advances in Meta’s artificial intelligence projects — such as continued progress on Meta AI and the development of AI-powered glasses, both of which are key components of the company’s long-term vision.

Zuckerberg reaffirmed the company’s commitment to investing in these technologies — as it continues to maintain the strength of its core platforms such as Facebook, Instagram, and WhatsApp. Meta saw continued engagement growth, with daily active people reaching 3.43 billion in March 2025, a 6% increase from a year earlier.

The advertising business also showed resilience. Ad impressions from the company’s family of apps (including Facebook, WhatsApp, and Instagram) was up 5%, and the average ad price increased 10% year-over-year.

However, losses deepened in Reality Labs, the cash-hemorrhaging division that’s home to Meta’s virtual and augmented reality hardware, software, and metaverse platforms — a $4.21 billion operating loss on $412 million in revenue.

Meta lowered its projected full-year 2025 total expenses to between $113 billion and $118 billion, but increased its yearly capital expenditures to $64 to $72 billion, primarily driven by investments in AI infrastructure, Reality Labs, and other core business costs.

The company has said it plans to invest up to $65 billion in AI infrastructure by 2025 — including building a data center nearly the size of Manhattan — with a strategic focus on building user engagement rather than direct monetization in the short term.

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