Meta, the parent of Facebook and Instagram, lifted revenue 22% to $US47.52 billion in the June quarter despite economic instability and as the social media giant scales up its AI play.
Ad impressions increased by 11% and the average price per ad went up by 9%.
The social media giant expects September quarter revenue to be in the range of $47.5 billion to $50.5 billion.
"We've had a strong quarter both in terms of our business and community," said Mark Zuckerberg, Meta founder and CEO.
"I'm excited to build personal superintelligence for everyone in the world."
In a memo, Zuckerberg said his team is seeing early signs of progress.
“Over the last few months we have begun to see glimpses of our AI systems improving themselves,” Zuckerberg said. “The improvement is slow for now, but undeniable. Developing superintelligence is now in sight.”
Meta warned it is preparing to spend big on infrastructure and on hiring talent.
The largest single driver of expenses in 2026 will be infrastructure costs, followed by employee compensation as Meta adds technical talent.
Meta expects 2025 capital expenditures to be in the range of $66 billion to $72 billion.
Headcount was up 7% to 75,945 at the end of June.
Will Easton, managing director, Meta ANZ, said AI investments have boosted ad efficiencies and conversions through Advantage+, while Gen AI creative tools are enhancing creativity.
"Australian and New Zealand users continue to embrace Meta AI, which only gets better with the ongoing launch of new features like Imagine Yourself. We also can’t wait to see the Oakley Meta HSTN glasses launch in Australia later this year," he said.
Minda Smiley, a senior analyst at eMarketer, said the results indicate the advertising sector may not have been hit hard by US president Donald Trump’s tariff war.
"Meta once again reported robust growth, signalling that the company not only weathered but perhaps even benefitted from economic instability in recent months,” said Smile.
“Its strong quarter signals that the broader digital advertising market might not yet feel the pain from tariffs, though that could change.
“And Meta, with its massive user base and savvy advertising platform, is likely to fare better than smaller social networks should advertiser pullbacks set in later this year.
"AI-driven investments into Meta’s advertising business continue to pay off, bolstering its revenue as the company pours billions of dollars into AI ambitions like superintelligence.
“But Meta’s exorbitant spending on its AI visions will continue to draw questions and scrutiny from investors who are eager to see returns.
"And even as its advertising business remains healthy, its earnings come against a backdrop of regulatory challenges that Meta faces in the US and abroad, adding more uncertainty to its future."
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