Meta posts 22% YoY revenue growth in Q2, with AI driving business impact: Arun Srinivas

Arun Srinivas, Managing Director and Country Head of Meta India, shared a tightly focused Q2 update that doubles as both financial report and strategic briefing. A 22 percent year-on-year revenue increase isn’t noteworthy just on its own; it’s the AI-fuelled lift behind it that changes the story.

“We just shared Q2 results at Meta, it’s another strong quarter for our business and community with 22% year-over-year increase in total revenue; on the back of AI continuing to drive real impact across our business and the experiences we build for people and partners,” Srinivas wrote.

“Our global community keeps growing, with more than 3.4 billion people using at least one of our apps every day. AI is playing a key role here — helping us show people more of what they find useful, interesting, and relevant,” he noted.

Meta’s AI is no longer an experimental addon. It’s weaving into recommendation systems, ad delivery, creative tools, even translation capabilities. The result? Time spent using Facebook rose 5 percent, Instagram climbed 6 percent this quarter.

“Our AI-powered recommendation systems continue to improve — leading to a 5% increase in time spent on Facebook and 6% on Instagram this quarter. We’re also seeing strong growth in video engagement: Instagram video watch time is up more than 20% year-over-year globally, and Facebook is showing similar growth.

With more than 3.4 billion people using a Meta app every day, even these marginal gains become seismic. And video is accelerating that momentum as Instagram video watch time shot up over 20 percent globally, while Facebook mirrored that rise.

“In Q2, Instagram video time was up more than 20% year-over-year globally,” Srinivas shared.

On the advertising front, the GEM model (Meta’s AI-powered recommendation engine) has gone live across more surfaces and is already delivering measurable results. Conversions are up 5 percent on Instagram and 3 percent on Facebook. The numbers might look modest, but at Meta’s scale, they translate into significant performance gains, and easier justification for ad spend.

"With more signals and longer context, it’s already driving 5% more conversions on Instagram and 3% on Facebook. Creative tools are seeing momentum too — nearly 2 million advertisers are now using our video generation features like Image Animation and Video Expansion, alongside strong results from our GenAI text tools. AI-powered ad creative is driving significant ad revenue, particularly benefiting smaller advertisers. Agencies will continue to help larger brands leverage these tools strategically. Nearly 2 million advertisers are now using our video generation features - Image Animation and Video Expansion. Q2 saw the start of AI-powered ad caption translations to 10 languages, with promising initial results,” Srinivas wrote further.

“We also rolled out Omnichannel Ads in Q2 — making it easier for advertisers to drive both in-store and online sales with a single campaign. Early results show a 15% median reduction in total cost per purchase compared to website-only campaigns. Meta AI is now available in over 200 countries and territories; our focus is on making it the leading personal AI,” he shared.

During the earnings call, Mark spoke about building superintelligence that empowers everyone — and the path ahead is bold. We have both the infrastructure and expertise to scale this technology, and a real opportunity to bring its benefits to billions through our products, concluded Srinivas.