Meta Third Quarter 2025 Earnings Conference Call

Summary

Meta reported strong Q3 2025 results with $51.2 billion in total revenue, up 26% year-over-year, driven by robust growth across its family of apps reaching 3.5 billion daily users. Key milestones included Instagram achieving 3 billion monthly users and Threads surpassing 150 million daily actives. The company's AI initiatives showed significant traction with over 1 billion people using Meta AI monthly, while Reels reached a $50 billion annual run rate and AI-powered advertising tools hit $60 billion. Looking ahead, Meta announced the establishment of Meta Superintelligence Labs and plans for aggressive AI infrastructure investments. The company expects significantly higher CapEx growth in 2026 compared to 2025, with increased spending on compute infrastructure, cloud services, and AI talent acquisition. Management emphasized their strategy to front-load capacity building to prepare for potential superintelligence breakthroughs, viewing this as essential for maintaining competitive advantage in both existing products and new AI-powered experiences. The earnings call highlighted Meta's confidence in converting AI investments into profitable returns through improved recommendations, advertising performance, and new product capabilities.

Key Points

• Meta reached 3.5 billion daily active users across family of apps
• Instagram hit 3 billion monthly active users milestone
• Threads surpassed 150 million daily active users
• Q3 total revenue was $51.2 billion, up 26% year-over-year
• Family of apps ad revenue was $50.1 billion, up 26%
• More than 1 billion people use Meta AI monthly
• Reels annual run rate exceeded $50 billion
• AI-powered ad tools reached $60 billion annual run rate
• Reality Labs revenue grew 74% to $470 million
• Company launching Meta Superintelligence Labs with aggressive AI investments
• Significant CapEx increase planned for 2026 to support AI infrastructure
• New Ray-Ban Meta and Oakley Meta glasses launched successfully

Action Items

• Increase manufacturing capacity for Meta Ray-Ban display glasses due to high demand
• Complete rollout of ads in WhatsApp status next year
• Expand business AI availability to more markets beyond Philippines and Mexico
• Continue consolidating ads ranking models (200 more models to be consolidated)
• Finalize 2026 budget and CapEx plans
• Develop and launch next generation AI models from Meta Superintelligence Labs

Decisions

• Establish Meta Superintelligence Labs as leading AI research division
• Aggressively front-load AI infrastructure capacity building
• Significantly increase 2026 CapEx spending beyond 2025 levels
• Raise 2025 total expenses guidance to $116-118 billion
• Increase 2025 CapEx guidance to $70-72 billion
• Partner with Blue Owl for joint venture data center development
• Launch streamlined Advantage+ campaign creation flow globally

Participants