Meta’s $51B Q3 report signals major talent restructure ahead

Meta’s third-quarter 2025 results show a company moving aggressively into its artificial intelligence era, with revenue and spending both hitting record levels.

The company reported $51.24 billion in revenue, up 26% year over year and its strongest quarterly growth since early 2024. Adjusted earnings per share came in at $7.25, excluding a $15.93 billion one-time tax charge, which lowered reported EPS to $1.05. The charge is non-cash and is expected to reduce future federal tax payments.

Costs are rising faster than revenue. Total expenses for 2025 are now projected at $116–$118 billion, up from previous guidance of $114–$118 billion. Capital expenditures are forecast at $70–$72 billion, reflecting the accelerated buildout of AI data centres, infrastructure, and the $27 billion joint venture with Blue Owl Capital in Louisiana.

CFO Susan Li highlighted that expense growth in 2026 will exceed revenue growth, driven mainly by infrastructure and cloud costs. Employee compensation is the second-largest driver, reflecting a full year of pay for 2025 hires, particularly AI specialists.

Meta’s headcount has climbed to 78,450, up 8% year over year. Hiring is focused on AI and technical roles, while non-core positions are being trimmed. Over the past two years, headcount fell from 86,000 at the end of 2022 to 67,000 in late 2023, before selective re-hiring began in 2024–2025. The company frames this as an “investment in long-term growth,” but the shift clearly realigns resources and roles around AI.

× Click to Read More

Advertising remains strong. Ad revenue rose to $50.08 billion, daily active users reached 3.54 billion, and engagement metrics across the family of apps continue to improve. Reality Labs continues to post losses, with a $4.4 billion quarterly deficit on $470 million in sales, even as Meta’s Ray-Ban Display glasses sold out quickly.

Analyst Gene Munster noted the contrast with previous quarters: revenue was rising faster than expenses earlier this year, but guidance for 2026 projects expenses increasing 35% while revenue grows 18%, reversing the margin trend. Zuckerberg emphasised that Meta operates in a “perennially compute-starved state,” highlighting the company’s need to expand AI infrastructure to maintain core business efficiency.

Meta’s next phase is defined by high-cost investment and selective hiring, with a clear signal that the company is reorganising around AI capabilities. The business engine remains strong, but future returns depend on whether these infrastructure and talent bets deliver at scale.

× Click to watch