10:41 AM EDT, 10/21/2025 (MT Newswires) -- Meta Platforms ( META ) is likely to post better-than-expected Q3 revenue on an improving macroeconomic landscape, accelerating AI benefits, and higher sector ad spending, BofA Securities said in a Tuesday research report. The company reports earnings on Oct. 29.

BofA expects Q3 EPS of $7.30 on revenue of $50 billion. For Q4, the firm expects EPS of $8.90 on revenue of $58.80 billion. For total revenue, BofA models a 1-point FX tailwind in Q3 and a 1.5-point tailwind in Q4, according to the note.

Meta's Q3 growth print could indicate AI-driven improvements in targeting, enhanced CRM integrations with enterprise clients, video model unification driving higher usage, and a ramp in advertiser adoption of GenAI-based creative tools, analysts wrote.

Meta is in the early stages of capturing AI-driven gains in its core ad business. Alphabet's (GOOG/GOOGL) Google ( GOOG ) and Microsoft ( MSFT ) -backed OpenAI, creating new AI experiences, could "potentially divert" engagement away from Meta, presenting a "modest headwind," according to the brokerage.

The company's job postings signal average job openings rose 6% sequentially in Q3, with a focus on AI analytics, data center operations, and infrastructure roles, BofA noted.

BofA reiterated its buy rating on the stock with a stock price target of $900 per share.

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