Meta Q3 2025 Preview: Will AI and Ads Justify the Premium?

Meta Platforms META reports its Q3 2025 results after the market closes on October 29. Analysts expect EPS of $6.72 and revenue of nearly $49.5 billion, putting the spotlight back on whether the company's growing investments in AI and advertising are beginning to pay off. The stock is up roughly 27% year-to-date.

Last quarter, total revenue grew 22% YoY to $47.52 billion, while advertising revenue rose to $46.6 billion, up a little over 21% YoY. Meta cited higher ad prices and solid engagement to explain the step-up, with global ad impressions up 11% and average price per ad up 9%. The question now is whether that pace held through Q3.

Spending is the other headline. CapEx was $17.01 billion in Q2, and management guided full-year 2025 CapEx to $66$72B, noting another year of similarly significant dollar growth likely in 2026 as AI data-center build-outs continue. During the first half of 2025, CapEx hit $30.7 billion, more than double the prior year period. Investors will want to hear whether that pace is sustainable and how quickly these investments can begin contributing to earnings power.

Despite the surge in investment, FCF was $8.55 billion in Q2. Meta ended the quarter with $47.07 billion in cash and marketable securities. The focus now is whether that level of cash generation can hold as CapEx rises further.

Finally, Meta's ARPU and monetization commentary will also be closely watched. Last quarter, global ARPU rose 15% YoY. Markets will look for confirmation that user engagement on Facebook, Instagram, and Reels remains strong amid competition.