Meta’s Earnings Top Estimates as It Lifts Spending Projections

Meta Platforms (META) reported third-quarter earnings that topped analysts’ estimates with a boost from artificial intelligence (AI) demand, and lifted its estimates for how much money it plans to spend this year as it invests in the emerging tech.

The Facebook and Instagram parent reported $40.59 billion in revenue, up from $34.15 billion the same time last year and above the $40.27 billion analysts had expected, according to estimates compiled by Visible Alpha. Meta posted $15.69 billion in net income, up from $11.58 billion and better than the $13.58 billion analysts had projected.

Meta Lifts the Lower End of Its Spending Forecast as It Invests in AI

Advertising revenue, the bulk of Meta’s revenue, climbed 18.6% to $39.89 billion, just above estimates of $39.56 billion, benefitting from the tech giant’s advances with AI.

“We had a good quarter driven by AI progress across our apps and business,” said CEO Mark Zuckerberg in a release, adding the company has also seen “strong momentum with Meta AI, Llama adoption, and AI-powered glasses.”

The results come as several big tech companies, including Meta, face intense pressure to show the billions of dollars they are spending on AI will boost results. The company raised the bottom range of its outlook for full-year capital expenditures to $38 billion to $40 billion, from $37 billion to $40 billion previously as Meta invests in AI.

Meta said it expects revenue in the fourth quarter of between $45 billion and $48 billion, with analysts expecting about $46.34 billion.

Shares of Meta edged 0.8% lower in extended trading following the release. They were up 67% for 2024 through Wednesday’s close.