Shares of Meta Platforms, Inc. (NASDAQ:META) experienced a considerable uptick on Thursday following the release of its fourth-quarter financial results, which exceeded analysts' expectations. This positive momentum was further fueled by the company's upbeat guidance for the first quarter, projecting sales above consensus estimates.
Meta disclosed earnings per share (EPS) of $8.88 in Q4, surpassing the consensus forecast of $8.16. Additionally, the company reported revenues totaling $59.89 billion, outperforming the anticipated $58.29 billion. These figures signal a strong financial quarter, underpinned by ongoing growth in daily active users and advertising activity across Meta’s extensive Family of Apps ecosystem.
By the end of December 2025, Family daily active people averaged 3.58 billion, marking a 7% increase year-over-year. Advertising impressions on Meta's platforms expanded by 18% compared to the prior year during Q4, complemented by a 6% rise in average price per ad. These metrics underscore the company’s ability to not only attract but also engage a growing global user base and monetize its platforms effectively.
The company’s expenditure profile reflected a 40% year-over-year rise in total costs and expenses during the quarter, primarily due to elevated infrastructure investments and increased employee compensation. Capital expenditures for the quarter, incorporating principal payments on finance leases, summed to $22.14 billion, indicative of continued commitments to expand data center capacity and technological infrastructure.
On the cash flow front, Meta generated $36.21 billion from operating activities and achieved a free cash flow of $14.08 billion in the same period. At the close of the year on December 31, liquid assets comprising cash, cash equivalents, and marketable securities amounted to $81.59 billion, while long-term debt reached $58.74 billion. Meanwhile, employee headcount grew by 6% year-over-year, reaching 78,865 individuals.
Looking ahead, Meta issued a sales forecast for the first quarter of 2026 projecting revenues between $53.50 billion and $56.50 billion, exceeding the consensus estimate of $51.31 billion. This guidance suggests confidence in sustaining robust operational momentum into the new year.
In response to these developments, a number of prominent analysts adjusted their price targets upwards, maintaining bullish ratings:
- Lloyd Walmsley of Mizuho kept his Outperform rating, raising the price target from $815 to $850.
- Mark Kelley from Stifel maintained a Buy rating, boosting the target from $785 to $820.
- Youssef Squali at Truist Securities reiterated a Buy rating and increased the target price from $875 to $900.
- Justin Post of B of A Securities preserved a Buy rating and raised the price target from $810 to $885.
- Barton Crockett from Rosenblatt sustained a Buy rating with a significant price target increase from $1117 to $1144.
From a technical standpoint, Meta’s stock currently trades 13.2% above its 20-day simple moving average (SMA) and 7.5% above its 100-day SMA, reflecting a pronounced short-term positive price trend. Despite this uplift, shares have declined marginally by 1.15% over the past 12 months, positioning them nearer to their 52-week high than the low.
The relative strength index (RSI) stands at 59.04, indicating a neutral momentum zone with neither oversold nor overbought conditions prevailing. Meanwhile, the moving average convergence divergence (MACD) remains above its signal line, suggesting underlying bullish momentum persists. Together, these indicators imply mixed but cautiously optimistic price action that market participants should monitor closely for direction.
The Benzinga Edge scorecard offers further insights into Meta’s comparative market performance. The firm scores exceptionally high on quality with a rating of 95.11, highlighting its robust financial health. Conversely, the stock ranks lower on value with a score of 44.75, reflecting a high valuation premium over peers. Momentum is also weak at 24.38, signifying recent underperformance relative to the broader market.
In trading following these announcements, Meta’s share price increased by 9.24%, reaching $730.50 as per Benzinga Pro data, signifying strong investor reception to the earnings beat and upward guidance.
Meta Platforms’ latest financial results delineate a company experiencing solid expansion in user engagement and advertising revenue streams while navigating cost pressures tied to scaling infrastructure and workforce. The adjusted price targets from several esteemed analysts reinforce positive sentiment, though technical and valuation metrics suggest that investors should remain judicious amid market fluctuations.