Technology giant Meta has reported quarterly profits that far surpassed expectations, easing investor concerns that its substantial spending on artificial intelligence and cloud infrastructure might stifle growth.
The firm posted a profit of $16.6 billion (£13.3 billion) on revenues of $42.3 billion (£33.9 billion) for the first quarter of the year, with advertising revenue remaining robust.
Shares in the social media powerhouse — which owns Facebook, Instagram, and WhatsApp — rose over three percent in after-hours trading.
“We’ve had a strong start to an important year; our community continues to grow and our business is performing very well,” said Meta chief executive Mark Zuckerberg.
“We’re making solid progress on AI glasses and Meta AI, which now boasts nearly a billion monthly users.”
This week, Meta unveiled its first standalone AI assistant app, positioning it as a rival to ChatGPT by providing direct access to its generative AI tools.
Zuckerberg, in a video posted to Instagram, described the app as “your personal AI”, primarily accessed through voice conversations and designed to adapt to each user.
Reflecting Meta’s social media roots, the app also features a social feed showcasing AI-generated posts from other users.
Defending the empire
Meta’s strong financial results come as it battles a major US antitrust case that could potentially force the company to divest from WhatsApp and Instagram.
The firm reported that 3.43 billion people use its family of apps daily.
Zuckerberg has denied in court that Meta acquired Instagram and WhatsApp to eliminate competition, rejecting allegations from the Federal Trade Commission.
The earnings follow recent changes to Meta’s content moderation approach, widely seen as an effort to appeal to US President Donald Trump.
Analysts had speculated that new US tariffs under Trump could dampen business ad spending, potentially affecting Meta’s main revenue stream.
“Meta’s robust earnings show the advertising arm remains healthy in Q1, indicating that dropping the fact-checking programme hasn’t dissuaded advertisers,” said Emarketer analyst Minda Smiley.
“However, investors will be keeping a keen eye on Q2, as the economic outlook shifts dramatically under new trade policies.”
Heavy AI investment ahead
Meta plans to invest heavily in infrastructure, budgeting $64–$72 billion for capital expenditure in 2025 — largely to support its AI ambitions.
Zuckerberg has cautioned that building AI systems for billions of users will be costly and could take years to achieve scale.
The company’s workforce has grown to 76,834, up 11 percent on the same period last year.
Despite strong stock performance, Meta faces growing regulatory scrutiny and intensifying competition — notably from Chinese startup DeepSeek, whose low-cost AI model has reportedly triggered an internal strategic response.