In the financial report released after market hours on Wednesday, Meta Platforms Inc (NASDAQ:META) announced its fiscal fourth-quarter results, revealing figures that outpaced analysts’ projections and reinforced the company's solid operational footing as it navigates increased spending.
The social media giant posted fourth-quarter revenue reaching $59.89 billion, surpassing the consensus estimate of $58.30 billion. Meanwhile, adjusted earnings per share came in at $8.88, well above the anticipated $8.16 per share, as per data compiled from Benzinga Pro. This strong performance underscores Meta's capacity to generate robust top-line growth amidst an evolving digital advertising landscape.
Year-over-year, total revenue surged by 24%, signaling sustained demand across Meta’s platforms. The user base, measured by family daily active people — encompassing Facebook, Instagram, WhatsApp, and Messenger — expanded by 7% to 3.58 billion, illustrating continued engagement growth. Advertising activity also gathered pace, with ad impressions lifting 18% year-over-year and the average price per advertisement experiencing a 6% annual increase.
Despite these encouraging trends, Meta’s operating margin declined to 41% in the quarter from 48% recorded a year earlier. This contraction largely reflects a 40% rise in operating costs and expenses, which amounted to $35.15 billion. Expenditures related to capital investment, including finance lease principal repayments, totaled $22.14 billion, highlighting the company’s commitment to infrastructure and innovation capabilities.
Employment levels grew modestly, with headcount increasing by 6% to reach 78,865 employees as of December 31, 2025. This rise points to intensified investment in human capital, likely to support the company’s evolving technical initiatives.
Meta’s cash generation remained robust, producing $36.21 billion in operating cash flow and $14.08 billion in free cash flow during the quarter. Liquidity stood strong at quarter-end, with cash and cash equivalents totaling $35.87 billion, providing flexibility for ongoing investments and strategic priorities.
Founder and CEO Mark Zuckerberg expressed enthusiasm about the company’s momentum, stating, “We had strong business performance in 2025. I’m looking forward to advancing personal superintelligence for people around the world in 2026,” signaling a continued strategic focus on artificial intelligence and personalized experiences.
Looking forward to the first quarter of 2026, Meta projects revenue between $53.5 billion and $56.5 billion, comfortably above the analyst estimate of $51.31 billion. For the full year of 2026, the company anticipates expenses ranging from $162 billion to $169 billion. Capital expenditures are expected to increase significantly, with an outlook of $115 billion to $135 billion.
Profit pressure from rising expenses is predominantly attributed to escalating infrastructure costs and increased employee compensation tied to investments in technical personnel. The capital expenditure surge is driven by Meta Superintelligence Labs efforts along with core business development activities.
However, Meta remains confident in its capacity to manage profitability despite these budget expansions, stating, “Despite the meaningful step up in infrastructure investment, in 2026 we expect to deliver operating income that is above 2025 operating income.” This guidance indicates an emphasis on efficiency and value extraction amid heavier outlays.
The company’s executives will provide further insights during an earnings call with investors and analysts scheduled for 4:30 p.m. ET on the same day.
Meta’s share price responded positively to the earnings release, with after-hours trading showing a 4.15% increase, reaching $695.91 at the time of reporting, reflecting investor confidence in the company’s financial trajectory.