Shares of Facebook-owner Meta Platforms Ltd. surged as much as 12% in afterhours trading on Wednesday, July 30, after its second quarter results beat estimates by a long way. The company also raised its guidance for the coming quarter, which was also ahead of expectations.Meta reported $47.52 billion in revenue for the second quarter, whereas analysts were working with a figure of $44.8 billion. Its Earnings Per Share (EPS) of $7.14, was also better than the $5.92 estimate.
Sales for the quarter increased by 22%, on a 22% growth base during the same quarter last year.
Meta’s advertising revenue, which is majority of the company’s topline, stood at $46.56 billion, ahead of the $43.97 billion estimates. CEO Mark Zuckerberg attributed this performance to greater efficiency and gains unlocked via their AI technology.For the ongoing quarter, Meta projected sales to be between $47.5 billion and $50.5 billion, which is ahead of the $46.14 billion that the street was expecting.
Meta also raised the lower end of the capex guidance to $66 billion. It had earlier projected the range to be between $64 billion to $72 billion.Reality Labs, the virtual reality and augmented reality unit reported an operating loss of $4.53 billion on sales of $370 million, both of which were lower than expectations.
Sales for the quarter increased by 22%, on a 22% growth base during the same quarter last year.
Meta’s advertising revenue, which is majority of the company’s topline, stood at $46.56 billion, ahead of the $43.97 billion estimates. CEO Mark Zuckerberg attributed this performance to greater efficiency and gains unlocked via their AI technology.For the ongoing quarter, Meta projected sales to be between $47.5 billion and $50.5 billion, which is ahead of the $46.14 billion that the street was expecting.
Meta also raised the lower end of the capex guidance to $66 billion. It had earlier projected the range to be between $64 billion to $72 billion.Reality Labs, the virtual reality and augmented reality unit reported an operating loss of $4.53 billion on sales of $370 million, both of which were lower than expectations.
Daily Active Users for Meta’s family of apps increased to 3.48 billion from 3.43 billion in the previous quarter and beat expectations of 3.45 billion.
“Super intelligence empowers people to be more creative, develop culture and communities, connect with each other and lead more fulfilling lives,” Zuckerberg said during the earnings call.
However, Meta said that growth in the fourth quarter will be lower than that in the third quarter, as there will be a high base effect playing out, although it did not provide any guidance for the fourth quarter sales.
Meta’s shares, which were up 16% in 2025 so far as of closing of regular trade on Wednesday, surged 11.7% in extended trading.
(With Inputs From Agencies.)
