In a stunning demonstration of its continued dominance in the digital advertising space, Meta Platforms has reported blockbuster third-quarter earnings that far exceeded analyst predictions.
The social media behemoth, parent company to Facebook, Instagram, and WhatsApp, announced revenue of $40.2 billion (£31.5 billion) for the quarter ending September 2025. This represents a robust 18% year-over-year increase and marks the company's fastest growth rate in over three years.
AI Drives Advertising Revolution
At the heart of Meta's success lies its strategic investment in artificial intelligence. The company's AI-powered advertising tools have proven remarkably effective, delivering unprecedented targeting capabilities for marketers while boosting engagement across platforms.
Meta's advertising revenue surged to $39.5 billion, with the company crediting its advanced AI recommendation systems for connecting users with more relevant content and advertisements.
User Growth Defies Expectations
Despite concerns about market saturation, Meta's family of apps continues to attract new users at an impressive pace:
- Facebook daily active users grew to 2.09 billion
- Family daily active people reached 3.24 billion
- All major platforms showed quarter-over-quarter growth
This sustained user engagement has silenced critics who predicted the platform was reaching its peak audience size.
Reality Labs: The Costly Future Bet
Not all divisions performed equally well. The company's Reality Labs segment, responsible for its metaverse and virtual reality ambitions, reported operating losses of $4.1 billion. This brings total losses for the division to over $45 billion since 2020.
However, CEO Mark Zuckerberg remains committed to the long-term vision, stating that these investments are crucial for positioning Meta at the forefront of the next computing platform.
Market Reaction and Future Outlook
Wall Street responded enthusiastically to the earnings report, with Meta shares climbing over 6% in after-hours trading. The company's strong performance stands in contrast to some tech peers who have struggled with advertising volatility.
Looking ahead, Meta provided fourth-quarter revenue guidance between $42.5 billion and $44 billion, suggesting confidence in maintaining momentum through the critical holiday advertising season.
The results demonstrate Meta's remarkable turnaround from its 2022 challenges, proving that strategic AI implementation and core platform improvements can drive substantial growth even in a competitive digital landscape.
