Meta (META, Financials) beat expectations for the first quarter, fueled by steady growth in ad sales and rising traction from its AI tools. It also raised spending plans as it ramps up AI infrastructure.

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Meta earned $16.64 billion, or $6.43 per share, up from $12.37 billion, or $4.71 per share, a year earlier. Revenue climbed to $42.31 billion, ahead of the $41.34 billion analyst consensus, according to FactSet. Guidance for Q2 came in at $42.5 billion to $45.5 billion, above the $43.84 billion midpoint estimate. Capex for 2025 was lifted to $64 billion$72 billion, up from $60 billion$65 billion.

CEO Mark Zuckerberg said Meta’s user base and AI efforts are growing, with Meta AI reaching nearly 1 billion monthly users. Total app usage hit 3.4 billion in March, up 6%.He said Meta is in a good position to manage economic uncertainty.

Meta’s growth precedes possible ad cutbacks linked to tariffs and slower spending from Chinese clients like Temu and Shein. Still, analysts say issuing forward guidance is a vote of confidence in the business.

Investors will track whether Meta can keep momentum as macro headwinds intensify.

This article first appeared on GuruFocus.