Meta set to report Q3 earnings amid massive AI spending
Meta will report its third-quarter earnings after the bell on Wednesday as the company continues its ambitious AI investment push.
Meta previously announced it would spend $72 billion in 2025 on AI infrastructure and hiring specialists, up from an earlier estimate of $65 billion, News.Az reports, citing foreign media.
So far, the spending includes $14.3 billion invested in Scale AI (SCAI.PVT), hiring its CEO as chief AI officer; at least $1.5 billion poured into a new data center in El Paso, Texas; a $27 billion financing deal with Blue Owl Capital for the Hyperion data center in Richland Parish, Louisiana; and millions more on recruiting AI experts from rivals including OpenAI and Apple.
At the same time, Meta laid off roughly 600 employees from its AI division, reflecting a broader trend among Silicon Valley tech giants.
For Q3, Meta is expected to report earnings per share of $6.72 on revenue of $49.6 billion, according to Bloomberg consensus estimates, up from $6.03 per share and $40.6 billion in the same quarter last year. Advertising revenue is projected at $48.6 billion, a 21% increase from $40.3 billion in Q3 2024.
Unlike cloud providers such as Amazon, Google, and Microsoft, Meta is not focusing on selling AI to enterprises. Instead, it is leveraging the technology to enhance its advertising business and increase user engagement.
Meta’s stock rose 0.3% before the bell on Wednesday.
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