In the midst of an artificial intelligence spending spree, Meta posted stronger-than-expected results for the second quarter, buoyed by growing ad revenue even as its expenses increased.

Meta posted a second-quarter profit that beat expectations by a wide margin, and revenue that topped forecasts for a 12th-straight quarter, as active users, ad impressions and ad prices all rose. The company also provided a revenue outlook for the current quarter that was better than forecast.

Meta Platforms shares surged in after-hours trading after it blew out second-quarter earnings expectations Wednesday afternoon. Along with Alphabet’s second-quarter earnings report last week, Meta’s release reveals a lot of strength in digital advertising,

Meta Platforms Inc. topped projections for second-quarter sales and gave a stronger-than-expected forecast for the current period, a sign that the social media company’s advertising business is still growing quickly enough to support aggressive spending on artificial intelligence.

Meta outperformed Wall Street expectations with its Q2 earnings report, sparking an aftermarket rally of as much as 10% Wednesday afternoon. Why it matters: The company's massive continued investments in AI infrastructure and talent — including a high-profile,