Meta's Q1 revenue is expected to be $41.378 billion, adjusted net income is $13.798 billion, and adjusted EPS is $5.279, according to Bloomberg's consistent expectations.

Meta Platforms will report its first quarter 2025 financial results after market close on Wednesday, April 30, 2025. 

Meta's Q1 revenue is expected to be $41.378 billion, adjusted net income is $13.798 billion, and adjusted EPS is $5.279, according to Bloomberg's consistent expectations.

Previous Quarter Review

Meta reported fourth-quarter earnings that beat on the top and bottom lines.

Here is how the company did compared with estimates from analysts polled by LSEG:

• Earnings per share: $8.02 vs. $6.77 expected

• Revenue: $48.39 billion vs. $47.04 billion expected

Meta CEO Mark Zuckerberg said he expects 2025 to redefine the company’s relationships with governments.

Sales in the fourth quarter jumped 21% year over year while net income grew 49% to $20.8 billion, up from $14 billion a year earlier.

Meta said it expects first-quarter revenue to be in the range between $39.5 billion and $41.8 billion. The midpoint of that figure trailed analysts’ expectations of first-quarter revenue of $41.73 billion.

Q1 Results Outlook

Tariff Impact on Advertising Spending in Focus

Meta's ad-pricing growth could face headwinds as large Chinese advertisers such as Temu and Shein are likely to pull back amid the rising trade war with China.

A discretionary spending pullback from retail advertisers will likely be a bigger drag on Meta than Alphabet, which has a higher exposure to digital ad spending across sectors. With TikTok getting another extension, any engagement gains for Meta will be limited.

Management raised its total expense view and capex last quarter, yet any weakness in core ad sales growth could be a bigger headwind to operating margin.

Tariffs on China will likely be at least a 50-100-bp headwind to Meta's gross margin given its exposure to VR/AR hardware sales. Management comments on the monetization of its Llama 4 model will be keenly followed.

Return on Hefty Capital Investments Remains Under Scrutiny

Meta delivered strong performance in Q4 2024, with daily active users surging 58.8% to 3.35 billion and average revenue per user (ARPU) climbing 8.6% to $14.25—an encouraging sign that its substantial capital expenditures are yielding returns to a promising degree.

Looking ahead to Q1 2025, growth may be modest, with projections pointing to a 9.5% increase in ARPU and a 4.4% rise in daily active users, underpinned by continued investments in AI and advertising infrastructure.

Margins on Watch Amid Layoffs

During the quarter, Meta has implemented cost-cutting measures, including layoffs, to streamline operations and enhance efficiency. These layoffs follow similar reductions in 2022 and 2023, with investors likely to monitor whether further rounds of cuts are imminent.

In the near term, margins are expected to decline, before stabilising in subsequent quarters. Given the slowing macroeconomic growth outlook, efficiency remains a key focus. Investors will be closely watching how management’s strategy of deprioritising non-strategic areas, such as hardware and select Reality Labs projects, while prioritising AI-powered tools, could help protect margins.

Analyst's opinions

Meta Platforms Price Target Lowered to $628 from $740 at Stifel

Stifel lowered the firm’s price target on Meta Platforms to $628 from $740 and keeps a Buy rating on the shares. Despite advertising holding up “better than we expected,” the firm is lowering estimates “across the board” for its digital advertising, e-commerce, marketplaces, and subscriptions internet coverage. The firm, which expect e-commerce and marketplace GMV growth to slow or decline as consumers face increased prices, says in a preview for the group that it “can’t remember a time outside of COVID where we’ve felt this level of discomfort with our forward estimates.”

Benchmark Cuts Meta Stock Price Target to $640 from $820

Benchmark analysts revised their price target for Meta Platforms to $640, a significant decrease from the previous $820, while maintaining a Buy rating on the stock.

The analysts expressed caution regarding Meta’s near-term prospects due to a weakening global demand environment. Despite these concerns, they remain optimistic about the company’s long-term competitive advantages, such as its increasing share of the U.S. digital market and its ability to allocate capital effectively for the benefit of equity investors. InvestingPro data reveals impressive fundamentals, with the company achieving a 21.94% revenue growth and maintaining industry-leading gross margins of 81.68%. InvestingPro subscribers have access to 12 additional key insights about Meta’s performance and prospects.

Meta Platforms Price Target Lowered to $580 from $730 at Roth Capital

Roth Capital analyst Rohit Kulkarni lowered the firm’s price target on Meta Platforms to $580 from $730 and keeps a Buy rating on the shares ahead of quarterly results. The firm is also lowering its estimates for Q2 and Q3, assuming lower-than-normal seasonality. Roth notes that Meta is its preferred Mega Cap name heading into Q1 earnings, given AI product catalyst, LlamaCon announcements, and possible change in 2025 OpEx/CapEx guidance narrative.