TLDR
- Meta posted Q4 profit of $22.8 billion on revenue of nearly $60 billion, exceeding Wall Street forecasts
- After-hours trading saw Meta shares surge more than 10% following the earnings release
- The company forecasts capital spending of $115-$135 billion in 2026 for AI infrastructure development
- Meta’s 3.58 billion daily active users across all apps represents continued growth in user engagement
- Reality Labs recorded a $6 billion operating loss while generating $955 million in revenue
Meta delivered a knockout quarter Wednesday. The Facebook and Instagram parent company reported numbers that left analysts impressed.
The tech giant earned $22.8 billion in profit on nearly $60 billion in revenue. Those figures topped expectations across the board.
Investors loved what they saw. Shares popped over 10% in extended trading.
CEO Mark Zuckerberg called 2025 a year of “strong business performance.” The company expects to bring in as much as $56.5 billion in the current quarter.
Meta’s user base keeps expanding. Daily active users across its apps reached 3.58 billion in the quarter.
Massive AI Investment Plans Unveiled
The company revealed eye-popping spending plans for the year ahead. Meta expects capital expenditures between $115 billion and $135 billion in 2026.
That represents a huge jump from the $72.22 billion spent in 2025. The money will fund AI infrastructure including data centers and computing power.
Meta isn’t alone in this spending spree. Amazon, Microsoft, and Google are all racing to build out AI capabilities.
Operating costs climbed 40% compared to the prior year. The company spent $35.15 billion on expenses in Q4.
Infrastructure investments totaled $22.14 billion in the quarter alone. Meta is betting big that AI will drive future growth.
The company dropped $14.3 billion to buy nearly half of Scale AI. The acquisition brought Scale AI’s CEO Alexandr Wang to Meta as chief AI officer.
Wang now runs Meta Superintelligence Labs. Zuckerberg says he’s focused on “advancing personal superintelligence for people around the world in 2026.”
Mixed Results in Emerging Technology
Meta’s Reality Labs unit continues burning through cash. The division lost $6 billion while generating $955 million in revenue.
These losses have become routine for the virtual and augmented reality business. The company recently trimmed jobs in the metaverse division.
Some of those cost savings will redirect toward wearables projects. Meta’s Ray-Ban smart glasses represent a key focus area.
Zuckerberg believes smart glasses will replace smartphones as the dominant computing platform. Analysts see potential in using AI-powered glasses for advertising.
The company hit some roadblocks with AI development. Delays have pushed back the Llama 4 Behemoth model release.
Reports suggest Meta may make its next AI model proprietary. That would reverse the open-weights approach that let outside developers access and improve the technology.
Google has grabbed the AI lead with its Gemini 3 model. The search giant now outpaces even OpenAI’s ChatGPT.
Legal Battles and Regulatory Scrutiny
A major trial targeting Meta’s impact on young users began in Los Angeles. The case centers on allegations that a 19-year-old woman suffered mental health damage from social media addiction.
Zuckerberg will take the witness stand during proceedings. Snap and TikTok parent ByteDance settled before trial, leaving Meta and YouTube as remaining defendants.
The FTC said last week it would appeal its antitrust case loss against Meta. The case claimed Meta purchased Instagram and WhatsApp to eliminate competitive threats.
