Meta beats Q3 estimates, expects AI costs surge
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The news: Facebook owner Meta Platforms beat analysts' estimates for third-quarter revenue and profit, but warned of "significant acceleration" in infrastructure expenses related to artificial intelligence.
The numbers: The social media giant reported third-quarter profit of USD6.03 ($9.17) per share, compared with estimates of USD5.25 per share, according to LSEG data.
Third-quarter revenue totalled at USD40.59 billion, compared with analysts' estimates of USD40.29 billion. The company also forecast between USD45 billion and USD48 billion in fourth-quarter revenue, compared with analysts' estimates of USD46.31 billion.
Meta kept recorded Q3 costs of USD23.2 billion and capital expenditure of USD9.2 billion. It also trimmed its total expense forecast from between USD96 and USD99 billion to between USD98 billion and USD96 billion.
However, the company lifted its full-year capex forecast from USD37 billion to USD40 billion, to USD38 billion to USD40 billion.
Meta shares were last down 1.6% in after-hours trading on the Nasdaq.
The context: Meta's earnings follow positive results from fellow tech heavyweights Alphabet and Snap, which both beat third-quarter revenue estimates on Tuesday, boosted by rising sales in AI-assisted ads.
The company said it continues to expect large capital expenditures growth in 2025 and a "significant acceleration" in infrastructure expense growth next year, recognising higher growth in depreciation and operating expenses of its expanded infrastructure fleet.
Meta said it is continuing to monitor an "active" regulatory landscape, including the "increasing legal and regulatory headwinds in the EU and the US that could significantly impact our business and our financial results".
The sources: Meta earnings release, Reuters
