Meta’s strategy hinges on a clear trade-off: its highly profitable ads business is funding an aggressive surge in capex, primarily for AI infrastructure — as explored in the economics of AI compute infrastructure — . The market is asking, "Is this working?”
Before the structural read, the accounting correction that matters most.
Meta reported $26.8B in net income and $10.44 diluted EPS. Both figures are distorted. The quarter includes an $8.03B one-time income tax benefit — a partial reversal of the $15.93B charge absorbed in Q3 2025 when the One Big Beautiful Bill Act was enacted. Strip it out:
Normalized net income: around $18.7B · Normalized EPS: about $7.31
THE BUSINESS ENGINEER
Continue Reading: Meta Ads: The Machine That Over-Funds The AI Bet?
Meta’s strategy hinges on a clear trade-off: its highly profitable ads business is funding an aggressive surge in capex, primarily for AI infrastructure.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
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