Meta Shares Jump 8% After Strong Q2 Earnings, AI Growth Drives Guidance Boost

Meta Platforms Inc (NASDAQ:META) surged over 8% in after-hours trading Wednesday following stronger-than-expected second-quarter earnings and optimistic guidance, fueled by its expanding artificial intelligence initiatives.

For the quarter ending June 30, Meta reported earnings of $7.14 per share on revenue of $47.52 billion, exceeding analyst expectations of $5.85 per share and $44.72 billion in revenue, according to Investing.com data. The company’s user engagement also grew, with Family Daily Active People (DAP) rising 6% year-over-year to 3.48 billion, slightly below consensus estimates of 3.54 billion.

Looking ahead, Meta forecast third-quarter revenue at around $49 billion, surpassing Wall Street’s $46.14 billion projection. However, the company cautioned that year-over-year revenue growth in the fourth quarter of 2025 will likely slow compared with the prior year due to tougher comparisons from 2024’s strong performance.

Meta also updated its capital expenditure forecast for 2025, narrowing its range to $66 billion to $72 billion from a previous estimate of $64 billion to $72 billion. The company highlighted that increasing infrastructure investments and rising employee compensation will add “meaningful upward pressure” on expenses heading into 2026.

The earnings results underscore Meta’s successful pivot toward AI-driven products and services, which have become a central growth engine for the tech giant’s advertising and platform ecosystems. Investors remain optimistic about Meta’s continued ability to leverage AI to enhance user engagement and monetization, even as higher costs loom on the horizon.

With robust financial performance and ambitious AI expansion plans, Meta’s latest earnings reaffirm its position as a leading force in the tech sector’s ongoing race to dominate artificial intelligence.