Meta Platforms reported fourth-quarter revenue growth of 24% year-over-year, exceeding consensus estimates by $1.4 billion. This quarter’s performance capped a landmark year in which the company crossed the $200 billion revenue threshold for the first time. Key drivers included strength in ad impressions, which rose 18% across Facebook, Instagram and Reels, and a 6% increase in average ad pricing driven by improved AI-powered targeting and attribution models.

The company has outlined plans for approximately $125 billion in capital expenditures for 2026, largely dedicated to expansion of data centers and AI infrastructure. This represents a near doubling of last year’s capital outlay and underscores Meta’s commitment to building proprietary supercomputing capacity. Executives emphasize that this level of spending is essential to support projected demand for AI training and inference workloads across its family of apps.

Meta generated over $116 billion in operating cash flow in the trailing twelve months, reflecting strong conversion of revenue into free cash. With a cash and marketable securities balance of $82 billion as of year-end, the company’s liquidity position provides a significant buffer to fund its aggressive capex program without resorting to external financing. Management has reiterated its target to maintain leverage at conservative levels even as investments accelerate.

Improvements in AI-driven ad ranking and measurement lifted engagement metrics, with Reels watch time up more than 30%. These efficiency gains contributed to guidance for first-quarter revenue growth of nearly 30% year-over-year. Meta’s leadership highlighted that enhanced AI tools not only increase advertiser ROI but also enable the company to capture a greater share of digital ad budgets shifting from traditional media.