Meta profits surge 35% on AI-driven progress
The tech giant said it will ramp up AI and infrastructure spending next year
Facebook parent Meta Platforms saw its profits surge 35% in the third quarter, as it looks to show investors that its multi-billion dollar investments into artificial intelligence are bearing fruit.
Meta saw $15.69 billion in net income last quarter, or $6.03 per share, up from $11.58 billion in the same quarter last year, the company reported after the markets closed on Wednesday. Wall Street had expected $13.49 billion in profit, or $5.21 per share, according to estimates compiled by FactSet.
Revenue came in at $40.59 billion, up 19% from $34.15 billion a year ago and surpassing Wall Street’s estimated $40.19 billion for the quarter.
“We had a good quarter driven by AI progress across our apps and business,” said Mark Zuckerberg, Meta founder and CEO. “We also have strong momentum with Meta AI, Llama adoption, and AI-powered glasses.”
Shares of Meta were down 3% in after hours trading.
The company said it expects fourth-quarter total revenue to be in the range of $45-48 billion. It lowered its full-year expense expectations to $96-98 billion, and raised capital expenditure estimates to $38-40 billion. Meta expects “significant capital expenditures growth in 2025” and “significant acceleration in infrastructure expense growth next year.”