Meta Platforms Inc. (NASDAQ:META) shares jumped over 4% in after-hours trading after the company reported a strong first quarter and raised its outlook, underscoring renewed confidence in AI-driven growth.

Meta Q1 at a Glance

• EPS: $6.43 vs. $5.24 expected

• Revenue: $42.31 B (+10% YoY) vs. $41.48 B expected

• Family Daily Active People: 3.43 B (+5% YoY)

Q1 Performance Surpasses Expectations

Meta once again beat consensus, driven by sustained engagement across Facebook, Instagram, WhatsApp, and its Reality Labs segment. Daily active people rose to 3.43 billion, a testament to strong user retention.

“Our community continues to grow globally, and we're seeing robust engagement as we integrate AI across our apps,” said CEO Mark Zuckerberg on the call.

AI Investment Remains a Top Priority

Meta's cloud and infrastructure investments climbed as the company guided 2025 capital expenditures to $64 B-$72 B, up from $60 B-$65 B. This increase signals Meta's commitment to scaling AI compute capacity.

• Q2 revenue guide: $42.5 B-$45.5 B (vs. $43.81 B consensus)

• FY 2025 expense outlook: $113 B-$118 B (down from $114 B-$119 B)

Dive into Management Commentary

For verbatim insights on AI strategy, cost discipline, and user-growth targets, review the full earnings discussion via FMP's Earnings Transcripts API. This resource delivers detailed Q&A excerpts and management outlooks straight from the call.
Access Meta's Q1 transcript

Key Financial Metrics and Valuation

Investors evaluating Meta's profitability amid rising capex should monitor changes in margins and cash generation. Real-time ratios—such as operating margin, return on equity, and free-cash-flow yield—are available through the Company Key Metrics API.

Core Ratios Snapshot (TTM)

• Operating margin: ~43%

• Net margin: ~30%

• FCF yield: ~8%

Investor Takeaways and Next Steps

• Earnings catalysts: Watch for detailed AI-monetization updates and Reality Labs performance.

• Guidance focus: Q2 revenue and FY capex ranges will be critical in modeling near-term cash flows.

• Valuation near term: With shares up on the beat-and-raise, consider whether the current price already reflects aggressive AI assumptions.