Meta Platforms has reported strong momentum in 2025 as advertising growth lifted revenue at an accelerating pace, yet management has warned that heavy investments in artificial intelligence (AI) infrastructure will push spending even higher in 2026.
Across the first three quarters of 2025, revenue growth jumped from 16% in the first quarter to 22% in the second quarter and 26% in the third quarter. That trajectory reflects gains in Meta’s advertising platform and the adoption of AI‑driven tools. However, capital expenditures for 2025 are projected to reach $70- $72 billion, and Chief Financial Officer Susan Li says next year’s spending will rise further as the company builds additional computing capacity for AI.
Meta’s revenue acceleration has been driven by continued growth in advertising demand across its family of apps. In the first quarter of 2025, the company reported revenue of $42.31 billion, up 16% year over year; ad impressions grew 5% and the average price per ad increased 10%. Free cash flow during the quarter was $10.33 billion, and Meta ended March with $70.23 billion in cash and marketable securities.
The second quarter showed an even stronger performance: revenue climbed to $47.52 billion, up 22%. Ad impressions grew 11%, average ad price rose 9%, and free cash flow reached $8.55 billion. These results indicate advertisers continued to spend more and pay higher prices for Meta’s ad inventory.
The third quarter continued the trend of accelerating top‑line growth. Meta reported $51.24 billion in revenue, up 26% year-over-year. Ad impressions increased 14%, while the average price per ad rose 10%. Although costs and expenses grew 32% as the company invested in AI infrastructure, Meta still generated $10.62 billion in free cash flow and held $44.45 billion in cash and securities. The company expects fourth‑quarter revenue between $56 billion and $59 billion, suggesting another solid finish to the year.
Meta’s management sees AI as a critical driver of future products and revenue. The company’s guidance calls for 2025 capital expenditures between $70 billion and $72 billion - already higher than the prior forecast of $66 billion to $72 billion.
In a conference‑call commentary, CFO Susan Li explained that Meta’s compute needs have expanded significantly and that the firm intends to invest aggressively in both its own infrastructure and third‑party cloud capacity.
She said, “Our current expectation is that CapEx dollar growth will be notably larger in 2026 than in 2025.” The company also expects total expenses to grow more quickly next year, driven primarily by infrastructure costs and depreciation.
Investors may be concerned that rising costs could compress profitability. In the third quarter, Meta’s costs and expenses rose 32%, outpacing revenue growth. Reuters reported that the company’s decision to accelerate AI data‑center construction caused its shares to decline after the earnings announcement.
Nonetheless, CEO Mark Zuckerberg argued that front‑loading capacity is a strategic move to prepare for future demand, noting that if superintelligence takes longer to arrive, the extra compute could still accelerate Meta’s core business. The company also continues to return cash to shareholders through share repurchases and dividends; share buybacks were $3.16 billion in the third quarter, and total dividend payments were $1.33 billion.
Also Read: Meta vs Google: Mango AI to Challenge Gemini Nano Banana
Meta has a sizable cash reserve, about $44.45 billion in cash and marketable securities, and generated roughly $10.62 billion in free cash flow. While more AI investment could reduce that cash flow next year, the company’s large war chest offers a safety net.
It is also expanding its user base, with 3.54 billion daily active users in September, up 8% over the previous year. Company leaders think improved AI-powered ad tools and new products like smart glasses will fuel future growth, though legal and regulatory challenges remain a risk.