Meta's first quarter earnings, revenue beat Wall Street's expectations
Meta's stock climbed in extended trading after the results came out.
The company earned $16.64 billion, or $6.43 per share, in the January-March period, up 35% from $12.37 billion, or $4.71 per share, in the same period a year earlier.
Revenue rose 16% to $42.31 billion from $36.46 billion a year earlier.
Analysts, on average, were expecting earnings of $5.23 per share on revenue of $41.34 billion, according to a poll by FactSet.
For the current quarter, Meta forecast revenue in the range of $42.5 billion to $45.5 billion. Analysts are expecting $43.84 billion.
The Menlo Park, California-based company also raised its capital expenditures estimate for 2025 to $64 billion-$72 billion, up from its prior outlook of $60 billion-$65 billion. Meta said the new guidance 'reflects additional data center investments to support our artificial intelligence efforts as well as an increase in the expected cost of infrastructure hardware.'
'We've had a strong start to an important year, our community continues to grow and our business is performing very well,' CEO Mark Zuckerberg said in a statement. 'We're making good progress on AI glasses and Meta AI, which now has almost 1 billion monthly actives.'
Zacks Investment Research analyst Andrew Rocco said that while many companies have not been providing guidance amid tariff concerns and an uncertain economic environment, the fact that Meta did is a 'bullish sign.'
On Tuesday, Meta released a standalone AI app, called Meta AI, that includes a 'discover' feed that lets users see how others are interacting with AI.
Meta shares jumped $24.20, or 4.4%, to $573.20 in after-hours trading. The stock is down about 8% year-to-date.
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