Meta Platforms delivered robust fourth-quarter results, reporting revenue of $59.893 billion, up 24 percent year-over-year and surpassing consensus estimates by roughly $1.5 billion. Earnings per share rose 11 percent to $8.88, topping analyst forecasts of $8.16. On a trailing twelve-month basis, revenue growth reached 22 percent, while gross margins held at an industry-leading 82 percent. The company closed the year with net cash and investments of $23 billion, underscoring a strong balance sheet despite elevated capital commitments.

The Reality Labs division recorded a $2.207 billion operating loss in 2025, slightly higher than the $2.146 billion loss in 2024. In response, Meta announced workforce reductions of 1,500 roles and the shutdown of three VR game studios. Management expects losses in this segment to remain near current levels in 2026, while reallocating a portion of the cost savings toward the smart glasses and wearables unit. Analysts at JPMorgan project Reality Labs losses peaking at $19.7 billion next year, with 70 percent of that spending directed to wearable devices and the remainder to VR and Horizon development.

Meta plans to ramp up infrastructure investment significantly in 2026, guiding full-year GAAP expenses to between $162 billion and $169 billion, a 38 to 44 percent increase, and capital expenditures of $115 billion to $135 billion, up 65 to 94 percent. Server and network asset additions drove net property, plant and equipment growth of 45 percent to $98 billion in 2025. Despite these outlays, management forecasts operating income above 2025 levels, supported by first-quarter revenue growth expectations of 25 to 30 percent. JPMorgan analysts maintain an overweight stance, citing “considerable headroom” for AI-driven ad targeting enhancements and continued momentum in ad sales as the key catalysts for sustained profit growth.