Meta Platforms Q3 revenue rises 26.2% to $51.24 billion, EPS beats by $0.51

METAMETA

Meta Platforms reported Q3 revenue of $51.24 billion, up 26.2% year-over-year, topping the $49.34 billion consensus while EPS reached $7.25, $0.51 above analysts’ forecasts. The company sees full-year EPS of 26.7, driven by AI-powered ad growth and expanding profit margins.

1. Meta Expands Teen Safety Measures on Instagram

Meta Platforms has implemented new content restrictions for its roughly one-year-old teen accounts on Instagram, blocking feeds that would receive a PG-13 movie rating. According to company spokesman Edward Patterson, these measures are part of a “comprehensive approach to ensuring teens have age-appropriate experiences.” The underlying age-estimation vendor deletes all selfies and ID images within 30 days. Early reporting shows these controls affect approximately 250 million under-18 users globally and aim to reduce exposure to mature content by an estimated 40%.

2. Meta Launches Dividend with Modest Yield and Low Payout Ratio

In 2024, Meta Platforms initiated its first quarterly dividend of $0.525 per share, representing $2.10 on an annualized basis and a yield of 0.3%. The ex-dividend date was December 15th, and the payout ratio stands at 9.3%, underscoring the company’s strong cash-flow generation. Meta’s decision to return capital follows three consecutive years of revenue growth exceeding 20%, and it marks a strategic pivot toward balanced capital allocation between share repurchases and dividends.

3. Institutional Investors Adjust Meta Stakes

During the third quarter, Citrine Capital LLC increased its Meta holding by 242.9%, acquiring an additional 1,698 shares to reach 2,397 shares, making up 0.8% of its portfolio. Asset Management One Co. Ltd. added 21,587 shares, bringing its total to 1,044,801 shares and representing 2.2% of its assets under management. Meanwhile, Commonwealth Equity Services LLC trimmed its position by 9.9%, selling 65,383 shares to end the period with 593,570 shares. Overall, institutional ownership remains high at approximately 80%.

4. AI Infrastructure Spending Drives Revenue and CapEx Outlook

Meta’s third-quarter revenue rose 26.2% year-over-year to $51.24 billion, driven by a 14% increase in ad impressions and a 10% rise in average price per ad as AI-powered targeting tools gain traction. The company forecasts capital expenditures of $70–72 billion for 2025, with further increases expected in 2026 to support data-center expansion and AI model training. Meta’s Llama large-language models and in-app AI assistant have been integrated across its 3.5 billion daily active users, underpinning management’s view that continued investment in AI infrastructure will sustain long-term monetization growth.

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