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AI Leads Meta’s Q2 Earnings Report
+22% YOY, 11.2% Stock bump, and an AI-centric vision
Mark Savant
July 31, 2025
Table of Contents
Meta is one of my favorite companies.
No, not because I think Facebook has been a net good for humanity or because I love Zuckerberg.
Meta is exciting to me, because of the continuous innovation.
From an AI standpoint, they’ve committed to open-source with Llama, invested in top talent, and investing tens of Billions into data centers.
Mark has an interesting vision for the future with AI wearables like glasses and virtual reality worlds with Oculus.
I’ve always loved gaming, and adventures. This new AI driven digital world is just that.
Additionally, Meta is one of the largest companies globally, and a member of the “magnificent 7”.
Meta’s Q2 Earnings report was just released and it paints a very innovative picture for the future.
Personal superintelligence, AI creative boom, new interactive interfaces.
It’s impossible to predict the future, but today I want to highlight Meta’s Q2 report
Meta Q2 Exceeds Expectations
Meta crushed expectations in Q2 2025 with adjusted EPS of $7.14, significantly ahead of the ~$5.88–5.89 street estimates, and revenue of $47.5 billion, up 22% YoY and above guidance. Net income rose ~36%, while operating margin expanded to 43% from 38% a year ago.
Meta’s aggressive investments in AI, talent, and infrastructure signaled confidence in its long-term trajectory, and investors reacted. Stock rose 11.2% in after hours trading.
Is Meta heading the right direction? |
Financial Highlights
Revenue: $47.52 billion (up 22% Year over Year)
Net Income: $18.34 billion (up 36% YoY)
Earnings per Share: $7.14 (up 38% YoY)
Operating Margin: 43% (up from 38% YoY)
Daily Active Users: 3.48 billion (up 6% YoY)
Ad Performance: Impressions up 11%, price per ad up 9%
Operating Cash Flow: $25.56 billion; Free Cash Flow: $8.55 billion
Cash on Hand: $47.07 billion
Capital Spending: $17.01 billion this quarter; raised full-year forecast to $66–72 billion
Employees: 75,945 (up 7% from last year)
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AI Strategy
Meta Superintelligence Labs: Established to develop AI models capable of self-improvement, aiming to create "personal superintelligence for everyone."
Key Hires: Alexandr Wang (former CEO of Scale AI) as Chief AI Officer, Nat Friedman (former GitHub CEO) as co-lead, and Shengjia Zhao (co-creator of GPT-4) as Chief Scientist.
Infrastructure Plans: Development of a mega-site named Hyperion, capable of producing 5GW of power, to support AI research and development.
Advertising Business
Revenue Contribution: Advertising remains Meta's core revenue engine, accounting for approximately 98% of total revenue.
Performance Metrics:
Ad impressions increased by 11%.
Average price per ad rose by 9%.
AI Integration: Nearly 2 million advertisers are utilizing Meta's AI-powered tools for video generation, text generation, and more.
Jobs and Future Vision
AI Talent Acquisition: Aggressive recruitment of top AI talent from companies like OpenAI, Google, and DeepMind, with compensation packages reportedly reaching up to $100 million.
Workforce Growth: Meta laid off 3,700 roles earlier this year, but headcount has increased by 7% year-over-year, reflecting ongoing investment in AI and infrastructure.
Regulatory Considerations: Meta is mindful of ethical concerns and the potential risks associated with open-sourcing AI models, emphasizing safety and manipulation safeguards.