"On the one hand, Meta announced $51.2 billion in revenue, a 26% increase year-over-year (YOY) from $40.6 billion and a quarterly record for the company. The boost also beat Wall Street's estimate of $49.6 billion, according to consensus estimates cited by Bloomberg. However, Meta also reported a non-cash income tax charge of $15.93 billion. This onetime charge led to a significant decrease-83%-in Meta's net income YOY. It also meant the company's earnings per share dropped to $1.05 from 2024's $6.03."
""Our compute needs have continued to expand" Meta also increased its estimated total expenses for 2025, from between $114 billion and $118 billion to $116 billion and $118 billion. Similarly, its estimated capital expenditures for the year rose to $70 billion to $72 billion, up from a range of $66 billion to $72 billion. Why the higher numbers? It all comes down to AI."
Meta generated $51.2 billion in revenue, a 26% year-over-year increase and a quarterly record that beat analyst estimates. The company recorded a one-time non-cash income tax charge of $15.93 billion that reduced net income by about 83% year-over-year and lowered reported earnings per share to $1.05 from $6.03. Meta said adjusted EPS would have been higher but missed consensus forecasts. The company raised its 2025 expense and capital expenditure outlook, attributing the increases to expanding compute needs driven by accelerating AI demand and over a billion monthly Meta AI users.
Read at Fast Company
Unable to calculate read time
Collection
[
|
...
]