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Sep 30
Meta Q3 2025 Earnings Report
Meta reported strong revenue growth in Q3 2025 but saw earnings decline due to a one-time tax charge.
Key Takeaways
Meta delivered a solid quarter with $51.24 billion in revenue and strong ad performance, but a one-time $15.93 billion non-cash tax charge significantly reduced net income.
Revenue grew 26% year-over-year to $51.24 billion.
Reported EPS was $1.05; adjusted EPS was $7.25 excluding the tax charge.
Net income dropped to $2.71 billion due to a $15.93 billion one-time tax charge.
Family of Apps generated over $50 billion in revenue, dominating Meta’s business.
Meta
Meta
Meta Revenue by Segment
Revenue by Segment
Family of Apps Revenue
CapyFin.comReality Labs Revenue
CapyFin.com Forward Guidance
Meta expects continued strong ad revenue in Q4 2025 but foresees pressure from lower Reality Labs revenue and increased infrastructure investments in 2026.
Positive Outlook
- Q4 2025 revenue guidance between $56–59 billion
- Strong ad revenue growth expected to continue
- Tax rate expected to normalize to 12–15% in Q4
- Cash flow and balance sheet remain strong
- AI and infrastructure investments expected to drive future growth
Challenges Ahead
- Reality Labs revenue expected to decline in Q4
- Capital expenditures projected to increase significantly in 2026
- Total expenses expected to grow at a faster rate in 2026
- Employee compensation to be a growing cost factor
- Regulatory risks in the EU and U.S. may materially impact revenue