03:26 PM EDT, 10/21/2025 (MT Newswires) -- Meta Platforms ( META ) is expected to report better-than-projected third-quarter results amid strong artificial intelligence momentum and other drivers, BofA Securities said Tuesday.

The brokerage projects earnings at $7.30 a share on revenue of about $50.01 billion for the September quarter, above Wall Street's views for $6.69 and $49.51 billion, respectively. In July, the technology giant guided third-quarter revenue between $47.5 billion and $50.5 billion.

"Our channel checks suggest that (third-quarter) digital ad spending was ahead of initial expectations, supported by an improving macro backdrop, accelerating AI advancements, and higher industry ad spend to offset softer organic Google traffic," BofA analyst Justin Post said in a note to clients. "Ad checks have been constructive, and another quarter of strong ad growth and guide could help reinforce confidence in the durability of Meta's AI ad engine."

The Facebook and Instagram parent is scheduled to report results Oct. 29.

BofA maintained its buy rating on the Meta stock, with a $900 price objective. The company's shares were little changed in Tuesday late-afternoon trade. The stock has jumped 25% so far this year.

"Given AI build, we expect continued (2025) investments," Post wrote. The company could narrow full-year expense range to between $115 billion and $117 billion from its prior outlook range of $114 billion to $118 billion. It could lift the low end of capex range by $2 billion to guide to $68 billion to $72 billion, according to the note.

A key focus on Meta's upcoming earnings call is likely to be its AI product and monetization roadmap, BofA said.

"In the near term, we believe Meta remains in the early stages of capturing AI-driven gains within its core ad business," Post wrote. "AI integrations appear to be driving both growth in user engagement and advertiser (return on investment), helping attract incremental ad spend."

For the fourth quarter, BofA expects EPS of $8.90 on revenue of $58.8 billion, also ahead of the Street's estimates of $8.12 and $57.29 billion, respectively.

The company's fully automated AI-driven ad platform, currently in beta, could be rolled out as early as the first quarter, according to the note. "The rollout has the potential to unlock incremental ad demand by simplifying campaign creation and improving performance outcomes for smaller advertisers," Post said.

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