Meta Platforms delivered a robust Q4 performance, reporting revenue of $59.9 billion, up 24% year-over-year and exceeding consensus estimates by approximately $1.5 billion. Adjusted EPS came in at $8.88, an 11% increase over the prior year and roughly $0.72 above analysts’ forecasts. North American ad impressions accelerated despite a challenging consumer environment, driving ad revenue growth that outpaced all major regions. The company also noted that average revenue per user rose by 15% globally, underscoring continued pricing power in key markets.

Looking ahead to 2026, Meta guided for a significant increase in infrastructure investments, projecting GAAP operating expenses of $162 billion to $169 billion, up 38%–44% year-over-year, and capital expenditures of $115 billion to $135 billion, a rise of 65%–94%. These outlays will fund expanded data centers, chip development and large-scale language model integration across Facebook, Instagram and WhatsApp. JP Morgan analysts estimate first-quarter revenue growth of 25.5%, with full-year 2026 revenue expanding by 25%–30% as AI-driven ad targeting and new product launches begin contributing to the top line.

Meta’s Reality Labs division reported a $2.207 billion operating loss in 2025, up slightly from $2.146 billion in 2024. Management expects losses to peak in 2026 at approximately $19.7 billion before beginning to moderate. In response, the company announced a reduction of 1,500 roles within Reality Labs and the closure of three virtual reality game studios, reallocating a portion of the savings toward its smart glasses and wearables business. This strategic shift aims to channel more capital into areas with clearer near-term monetization pathways, such as augmented reality hardware and AI-enhanced user experiences.