Meta’s Q1 Earnings Surge 33% Beats Analyst Forecasts Despite Layoff Plans

Meta Reports $56.31 Billion in Q1 Revenue, Beats Analyst Expectations

Meta announced $56.31 billion in first-quarter revenue for 2025, marking a 33% year-over-year increase and surpassing Wall Street’s projected $55.45 billion estimate.

Despite the strong financial performance, Meta’s shares fell 5% in after-hours trading. The company reported an earnings per share (EPS) of $10.44, but excluding a tax credit from the Trump administration’s One Big Beautiful Bill Act, adjusted EPS stood at $7.31, beating analyst expectations of $6.66.

“We had a milestone quarter with strong momentum across our apps and the release of our first model from Meta Superintelligence Labs. We’re on track to deliver personal superintelligence to billions of people.”

Layoffs Planned Despite Strong Q1 Performance

Meta’s impressive revenue growth comes ahead of a major workforce reduction. The company announced plans to cut 10% of its staff, affecting approximately 8,000 employees, starting May 20. Additionally, Meta will halt hiring for 6,000 open roles as it shifts focus toward AI initiatives.

As of March 31, Meta employed 77,986 people, a 1% year-over-year increase. However, this figure does not yet reflect the upcoming layoffs.

Meta’s AI Push Drives Financial and Strategic Shifts

Zuckerberg’s aggressive investment in AI began in June 2024 with a $14.3 billion commitment to Scale AI and the hiring of CEO Alexandr Wang. Meta, which operates platforms including Facebook, Instagram, and WhatsApp, employed 78,865 people at the end of 2024.

The New York Times previously reported that Zuckerberg anticipates AI will eventually replace most jobs in the technology industry.

Key Takeaways from Meta’s Q1 2025 Earnings Report

• Revenue: $56.31 billion (up 33% YoY)
• Analyst Estimate: $55.45 billion
• Adjusted EPS: $7.31 (vs. $6.66 expected)
• Workforce: 77,986 employees (as of March 31)
• Layoffs: 10% of staff (8,000 employees) starting May 20
• Hiring Freeze: 6,000 open roles paused
• AI Investment: $14.3 billion in Scale AI (June 2024)