Meta Crushes Earnings, Doubles Down on AI Without Scaring Investors

​Meta just dropped a monster earnings beat—and instead of spooking investors with rising AI spending, it gave them more reason to buy in​.

The company reported $6.43 EPS, smashing estimates of $5.23, and ad revenue hit $41.39 billion, comfortably beating expectations. Shares jumped 5.4% in after-hours trading.

The twist? Meta also raised its capital expenditure forecast from $60–65 billion to $64–72 billion—a clear signal that it’s pouring even more into artificial intelligence infrastructure. But unlike rival Alphabet, which kept its capex flat, Meta made the case that its AI bet is already paying off.

And investors bought it.

“Ad growth was much better than expected,” said D.A. Davidson’s Gil Luria. That stronger-than-expected ad engine gives Meta the room to spend, especially as AI helps improve targeting and conversion rates across platforms like Threads and WhatsApp.

Management acknowledged that tariffs have slowed ad spending in Asia, but brushed it off by pointing to a healthy April and Q2 revenue guidance of up to $45.5 billion—above Wall Street’s consensus.

Unlike in past cycles, Meta is now selling its AI story as an enhancer to its core ad business, not just a moonshot. The result? Investors aren’t flinching—they’re applauding.

​Bottom line: Meta’s earnings crushed expectations, and even with an AI spending surge, Wall Street’s all in. Strong revenue now gives Meta cover to scale its AI empire—and investors seem ready to follow.