Meta Platforms reported record quarterly revenue of $64 billion, surpassing analysts’ expectations of $63.3 billion, as the technology giant opened the latest Big Tech earnings season. However, its reported earnings were affected by legal expenses associated with a settlement concerning teen mental health.
The company also announced a 2-for-1 stock split involving its Class A shares and the issuance of non-voting Class C shares. The move is designed to help CEO Mark Zuckerberg maintain control of the company while preserving its ability to finance substantial investments in artificial intelligence (AI).
Earnings Performance Exceeds Expectations
For the quarter, Meta Platforms reported generally accepted accounting principles (GAAP) earnings per share (EPS) of $3.83, exceeding analysts’ estimates of $3.56. However, the figure would have reached $7.40 per share without the legal charge related to the teen mental health settlement.
The results represent a significant increase from the corresponding quarter last year, when Meta Platforms recorded earnings per share of $1.05 and revenue of $51.2 billion.
The latest performance highlights the company’s continued revenue growth, even as legal expenses affect its reported profitability. The results also underscore the importance of distinguishing between reported earnings and figures adjusted to exclude exceptional costs when assessing the company’s financial performance.
Stock Split Supports Ownership Structure and AI Investment
Meta’s announced 2-for-1 stock split is intended to support its existing ownership structure while allowing the company to continue funding its expanding AI infrastructure and development initiatives.
Under the announced arrangement, holders of Class A shares will receive non-voting Class C shares. This structure is designed to enable Meta to raise capital and support its long-term investment strategy without compromising Zuckerberg’s overall control of the company.
The announcement comes as major technology companies continue to invest heavily in AI capabilities, infrastructure, and computing resources to strengthen their competitive positions.
Capital Expenditure Outlook Revised
Meta Platforms also updated its capital expenditure guidance, narrowing the projected range for the year. The company raised its lower-end estimate from $130 billion to $135 billion, while maintaining the upper limit at $145 billion.
The revised outlook signals continued substantial spending on infrastructure and other strategic priorities, particularly AI-related initiatives.
With record revenue, earnings affected by legal costs, and an expanded investment outlook, Meta’s latest results highlight the balance between financial performance, corporate control, and the considerable costs associated with its long-term technology ambitions.
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