Meta Platforms, Inc. (NASDAQ: META) is set to release its fourth-quarter earnings report following the market close on Wednesday, placing the technology giant under close investor and analyst scrutiny. The upcoming report arrives amid significant legal hurdles, including lawsuits concerning WhatsApp’s encryption disclosures and safety concerns related to its AI chatbot functionalities.
Market expectations suggest Meta will generate approximately $58.30 billion in revenue for the quarter, with analysts forecasting earnings per share (EPS) of $8.21. These projections come as the company confronts heightened regulatory and legal challenges, putting pressure on its ability to maintain robust financial performance.
Historical earnings data shows Meta’s consistent track record of exceeding analysts’ estimates. The company has surpassed earnings projections in each of the previous four quarters. In the most recent quarter, ending October 29, Meta reported an EPS of $7.25, outpacing the anticipated $6.68. Revenue totaled $51.24 billion, exceeding expectations by nearly $1.85 billion against the predicted $49.39 billion. This trend of overperformance also included a notable EPS figure of $7.14 reported in July 2025, well above the forecast of $5.87.
Such consistent overachievement signals strong operational execution despite emerging legal risks, making key financial metrics and business indicators vital for market participants ahead of the earnings announcement. Investors will be particularly attentive to updates on advertising revenue performance and user engagement levels across Meta’s core platforms, such as Facebook and Instagram, where advertising continues to be the predominant revenue engine.
In the lead-up to the earnings release, several equity analysts have adjusted Meta's price targets, reflecting nuanced views on the company’s outlook amid the current pressures. Rohit Kulkarni from Roth Capital retained a Buy rating but revised the price target downward from $845 to $800. Similarly, Justin Patterson at Keybanc held an Overweight rating and moderated the price target from $875 to $835.
Contrasting these adjustments, James Cordwell from Rothschild & Co upgraded Meta’s rating from Neutral to Buy, raising his price target significantly from $740 to $900, indicating confidence in the company’s prospects despite the legal challenges. Meanwhile, Jefferies analyst Brent Thill reaffirmed his Buy rating and maintained the $910 price target without modification. UBS’s Stephen Ju also kept a Buy stance but lowered his price target from $915 to $830.
As of mid-session trading, Meta’s stock exhibited limited movement, trading marginally higher by 0.24% at $674.56. This trading behavior reflects cautious market sentiment as investors weigh the mixed analyst implications and ongoing courtroom developments.
The evolving legal context, centered particularly around privacy disclosures linked to WhatsApp encryption and the recent scrutiny of AI-related safety features, adds complexity to the current quarter’s financial outlook. These legal matters could influence not only investor confidence but also future operational and compliance costs.
Overall, Meta’s forthcoming earnings report is positioned as a critical assessment point. It will indicate whether the company can sustain its financial momentum and operational growth in a landscape increasingly shaped by intensified regulatory and litigation environments.