TLDR
- Meta reports third-quarter earnings Wednesday after market close with analysts expecting $6.69 EPS and $49.4 billion revenue
- The company laid off 600 workers in its Superintelligence Labs AI unit last week while preserving its top-tier TBD Labs
- Meta formed a $27 billion joint venture with Blue Owl Capital to build a massive data center in Louisiana
- Meta AI app downloads jumped 56% month-over-month to 3.9 million by October 18, though OpenAI’s Sora app saw higher iOS downloads
- Reality Labs unit expected to post $5.1 billion operating loss on $316 million in sales for the quarter
Meta Platforms Inc reports its third-quarter earnings Wednesday after market close. Wall Street expects earnings per share of $6.69 on revenue of $49.4 billion.
Investors are watching closely for updates on the company’s AI spending plans. Meta has poured money into artificial intelligence throughout 2025.
The company made some big moves in recent days. Last Wednesday, Meta cut 600 jobs in its Superintelligence Labs AI unit.
The cuts left the group’s top-tier TBD Labs untouched. This restructuring came after Meta overhauled its AI organization following the lukewarm reception to its Llama 4 software in April.
A day before the layoffs, Meta announced a major data center deal. The company formed a $27 billion joint venture with Blue Owl Capital to build a facility in Richland Parish, Louisiana.
AI Spending and Revenue Growth
Meta warned in July that AI investments would drive higher expenses in 2026. The company raised its 2025 expense outlook to between $114 billion and $118 billion.
Wall Street projects third-quarter sales of $49.4 billion, up 22% year-over-year. Full-year sales are forecast to reach $196.2 billion, a 19% jump.
Advertising revenue remains the core business. Analysts expect ad sales of $48.5 billion for the quarter.
The company’s daily active people metric should hit 3.5 billion for the third quarter. This measures users across Facebook, Instagram, WhatsApp, and other properties.
Meta AI App Performance
Meta launched its AI-powered Vibes video creation tool on September 25. The feature includes a social feed for AI-generated content.
Downloads of the Meta AI app surged 56% month-over-month to 3.9 million by October 18. Data from Appfigures shows the app gained traction on both iOS and Android.
But OpenAI’s Sora app pulled ahead on iOS during the same period. Sora recorded 2.6 million iOS downloads from September 30 through October 18.
Meta AI managed just 1.1 million iOS downloads in that timeframe. Meta has been paying creators to post AI-generated videos on Vibes.
Organizational Changes
Meta shifted some leadership around this week. Vishal Shah moved from leading metaverse initiatives to a product role in the AI unit.
The Reality Labs division continues to lose money. Analysts expect a $5.1 billion operating loss on just $316 million in sales for the third quarter.
Reality Labs develops virtual reality, augmented reality, and AI-powered smart glasses. The division has been a cash drain for years.
Meta shares have climbed nearly 30% in 2025. Options pricing suggests traders expect a 6% swing in either direction after the earnings release.
Analysts surveyed by Visible Alpha set a mean price target near $873. That would represent roughly 16% upside from midday Wednesday trading levels.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
