Meta Platforms delivered a standout fourth quarter for 2025, reporting year-over-year revenue growth of 24% to $59.9 billion and adjusted earnings per share up 11% to $8.88. These results surpassed consensus estimates on both top and bottom lines. Management guided for first-quarter revenue acceleration, with next-quarter top-line growth expected to reach as high as 30%, underscoring strong advertiser demand powered by enhanced AI targeting capabilities.

The company has outlined an aggressive investment plan for 2026, forecasting GAAP operating expenses of $162 billion to $169 billion and capital expenditures between $115 billion and $135 billion—up nearly 65% to 94% year over year. As of year-end 2025, net property, plant and equipment tied to servers and network assets stood at $98 billion. JP Morgan projects free cash flow of approximately $5 billion in 2026, reflecting the heavy up-front outlays to support the company’s AI infrastructure build-out.

Meta’s Reality Labs division continued to record substantial operating losses—$2.207 billion in 2025 versus $2.146 billion in 2024—and is expected to peak at roughly $19.7 billion in 2026. To rein in costs, the company announced cuts of 1,500 roles within Reality Labs and the closure of three virtual reality game studios, while reallocating 70% of the segment’s spending toward wearables such as smart glasses and 30% to VR platform development.

Analysts highlight that Meta’s AI models are materially boosting ad impressions and engagement, leading to robust ad margin expansion despite the elevated cost base. JPMorgan forecasts reported revenue growth of 25.5% for full-year 2026, with investor discussions suggesting a potential range of 25% to 30%. The enhanced targeting and performance benefits from large-language-model integration support the thesis that advertising efficiency gains will offset the near-term margin pressure from elevated capital investments.