TLDR
- Meta’s fourth-quarter revenue reached $59.89 billion, surpassing Wall Street’s estimate of $58.59 billion.
- Earnings per share for the quarter were $8.88, exceeding the forecast of $8.23.
- Meta’s full-year revenue for 2025 totaled $200.97 billion, marking a 22% increase from 2024.
- Operating expenses for the fourth quarter rose by 40%, reaching $35.15 billion.
- Meta’s operating income for Q4 climbed 6% to $24.75 billion despite rising expenses.
Meta stock surged 4% in after-hours trading on Wednesday following a strong performance in its fourth-quarter earnings report. The company posted a revenue of $59.89 billion, surpassing analysts’ expectations of $58.59 billion. Earnings per share (EPS) came in at $8.88, exceeding the forecast of $8.23, further boosting investor confidence. This strong financial performance helped Meta maintain a positive market reaction after the market closed.
Meta Stock Responds to Solid Q4 Earnings
Meta’s fourth-quarter revenue exceeded Wall Street’s expectations, increasing by 24% compared to the same quarter last year. The company’s revenue for Q4 amounted to $59.89 billion, driven by strong business operations and increased demand for its products. Mark Zuckerberg, Meta’s founder and CEO, praised the results, stating, “We had strong business performance in 2025 and look forward to advancing personal superintelligence for people around the world in 2026.”
Despite the positive revenue growth, Meta faced increased expenses during the quarter. Operating expenses climbed 40% year-over-year to $35.15 billion. Although these rising costs impacted operating income, the company still achieved a quarterly operating income of $24.75 billion, up 6% from the previous year.
Meta’s Full-Year Performance Shows Growth
For the full year, Meta reported $200.97 billion in revenue, marking a 22% increase from 2024’s $164.5 billion. Despite the growth, net income for the year fell by 3% to $60.46 billion. Meta’s operating margin also saw a slight dip, down to 41% from 42% the previous year. This change in margins was due to rising operational costs, including significant investments in AI infrastructure and employee compensation.
Meta’s capital spending increased sharply in 2025, reaching $72.22 billion. The company’s Q4 capital expenditures were $22.14 billion, and its total capital expenditures for the year included a major focus on AI infrastructure. Meta’s efforts to advance AI technology drove up its costs, but the company believes these investments will lead to future growth in 2026.
Meta’s Financial Outlook for 2026
Meta forecasts Q1 2026 revenue between $53.5 billion and $56.5 billion, bolstered by a 4% benefit from foreign exchange. The company expects full-year expenses in 2026 to be between $162 billion and $169 billion. A major factor in these increased costs is the expansion of AI infrastructure, which includes investments in third-party cloud services, depreciation, and maintenance.
Meta’s capital expenditures for 2026 are expected to range from $115 billion to $135 billion, focused on further investments in AI and other core platforms. Despite these rising costs, Meta is confident that its operating income will improve compared to 2025. The company’s tax rate for 2026 is projected to remain between 13% and 16%, depending on the status of U.S. tax policies.
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