META PLATFORMS INC-CLASS A (NASDAQ:META) Reports Mixed Q3 2025 Results Amid Tax Charge and AI Spending Plans

Meta Platforms Inc-Class A (NASDAQ:META) reported its third quarter 2025 financial results, delivering a performance that left investors with mixed signals. While the company demonstrated robust revenue growth, its bottom line was significantly impacted by a substantial tax charge, leading to a sharp decline in after-hours trading.

Quarterly Financial Results

The social media giant reported Q3 2025 revenue of $51.24 billion, a substantial increase of 26.2% compared to the same period last year. This figure surpassed analyst projections, highlighting continued strength in the company's core advertising business. However, earnings told a different story.

• Reported Revenue: $51.24 billion
• Analyst Estimated Revenue: $50.38 billion
• Reported Non-GAAP EPS: $7.25
• Analyst Estimated Non-GAAP EPS: $6.82

While the company beat on both the top and bottom lines based on non-GAAP metrics, its GAAP earnings per share of $1.05 fell a dramatic 84% below consensus estimates. This steep decline was primarily driven by a one-time tax charge that significantly compressed net profitability for the quarter.

Market Reaction and Price Action

The market's response to these mixed results was decisively negative. Following the earnings release, Meta's stock retreated in after-hours trading.

• After-Market Performance: -7.3%
• Recent Performance Context:
  • Last Week: +2.5%
  • Last Two Weeks: +6.0%
  • Last Month: +2.3%

The sharp after-hours drop effectively erased the modest gains the stock had accumulated over the preceding weeks, indicating investor concern over the earnings miss on a GAAP basis and the company's forward-looking expense guidance.

Forward Outlook and Analyst Estimates

Looking ahead, Meta provided its revenue guidance for the fourth quarter of 2025, projecting a figure of approximately $57.5 billion. This outlook sits comfortably near current analyst expectations. However, the company also signaled a significant increase in total expenses for the 2026 fiscal year, noting it will "continue to invest at historic levels in artificial intelligence." This commitment to heavy spending, while aimed at securing long-term growth, appears to be weighing on near-term investor sentiment as markets digest the implications for future profitability.

• Company Q4/2025 Revenue Guidance: ~$57.5 billion
• Analyst Estimated Q4/2025 Revenue: $58.26 billion

Press Release Summary

The core announcement from Meta's press release confirmed the company's strong quarterly revenue growth. The report also contained the key elements that drove the market's reaction: the significant earnings impact from a one-time tax charge and the forward-looking statements concerning increased operational expenses tied to aggressive investments in AI and Reality Labs.

For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the data available on the META earnings and estimates page.

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Disclaimer: This article provides a summary of recently reported financial data and market performance for informational purposes only. It is not intended as investment advice, financial guidance, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.