Meta Platforms posted Q4 non-GAAP EPS of $8.88, beating estimates by 8.16%, with revenues of $59.89 billion, up 23.8% year-over-year. Free cash flow in the quarter reached $14.08 billion, supported by a cash and marketable securities balance of $81.59 billion.

Family of Apps revenue rose 24.6% to $58.94 billion, driven by a 24.3% increase in advertising revenue and growth to 3.58 billion daily active users. Reality Labs revenue declined 11.8% to $955 million, widening its loss to $6.02 billion due to heavy R&D and infrastructure spending.

Meta guided Q1 2026 revenue between $53.5 billion and $56.5 billion and forecast 2026 capital expenditures of $115–$135 billion to support AI initiatives and infrastructure. The company expects operating income to exceed 2025 levels despite higher depreciation, cloud costs and AI hiring expenses.

Total costs and expenses rose 40.5% to $35.15 billion, contracting the operating margin by 700 basis points to 41.3% as R&D expenses climbed to 28.6% of revenue. Marketing expenses fell 100 basis points while general and administrative costs increased 460 basis points year-over-year.