Meta reported fourth-quarter revenue growth of 24% year-over-year to $59.9 billion, comfortably ahead of consensus forecasts. Adjusted earnings per share rose 11% to $8.88, beating expectations by more than 8%. Advertising revenue—the company’s core business—benefited from improved pricing in North America and robust impression growth globally, with daily active users on its flagship platforms reaching 3.1 billion. Management also guided for first-quarter top-line growth of up to 30%, underscoring confidence in sustained advertiser demand and AI-driven monetization gains.

Meta plans to increase capital expenditures by roughly 65%–94% in 2026, targeting $115 billion to $135 billion in data-center and network build-out. At year-end 2025, net property, plant and equipment stood at $98 billion, up 45% year-over-year, driven by server and networking asset additions. Off-balance-sheet contractual commitments surged to $131 billion from $33 billion, reflecting long-term commitments for third-party cloud capacity and infrastructure expansion tied to its AI roadmap. Despite the step-up in spending, management expects full‐year operating income to surpass 2025 levels.

Reality Labs reported a loss of $2.207 billion in 2025, following a $2.146 billion loss in 2024, with peak annual losses projected at $19.7 billion in 2026. In response, Meta plans to cut 1,500 roles and shutter three virtual reality game studios while reallocating 70% of Reality Labs operating expenses toward wearables initiatives—most notably its smart glasses—and 30% toward virtual reality and Horizon projects. This pivot aims to stem cash burn in underperforming metaverse efforts and concentrate investment on hardware with clearer near-term revenue prospects.