Meta Platforms Earnings: Watch These Key Metrics

Core Insights - Meta Platforms (META) has shown strong performance in 2025, with shares up 26% compared to the S&P 500's 18% gain, and holds a favorable Zacks Rank 2 (Buy) with bullish near-term EPS expectations [1][5]. Advertising Revenue - Advertising remains a crucial metric for Meta, accounting for the majority of its revenue, with AI implementations enhancing ad relevance and performance [3][14]. - Expected ad revenue for Meta is $48.5 billion, reflecting a significant 21% year-over-year increase, consistently surpassing consensus expectations [4][12]. User Engagement - Daily Active People (DAP) across Meta's family of apps averaged 3.48 billion in June 2025, marking a 6% year-over-year increase, indicating robust user base growth [6]. - The consensus estimate for DAP in the upcoming period is 3.49 billion, representing a 6.1% increase from the previous year, aligning with recent growth trends [7]. Valuation and Growth - The current valuation for Meta stands at a forward 12-month earnings multiple of 24.9X, reflecting a modest 5% premium over the S&P 500 [8]. - The company is projected to achieve 18% EPS growth alongside a 19% increase in sales for the current fiscal year [8]. Earnings Expectations - Quarterly sales and EPS expectations for Meta remain largely unchanged since early August, with anticipated adjusted EPS growth of 10% on 22% higher sales [12].