Meta reports better than expected revenue forecast
Meta has delivered a phenomenal Q4 2025 earnings result that exceeded market expectations driven by strong advertising demand and it also accelerated work on its AI initiatives.
Meta Platforms, Inc. (NASDAQ: META)
on 28 January 2026 announced its fourth quarter 2025 results which surpassed market expectations.
Total revenue for the fourth quarter increased to US$59.9 billion compared to US$48.4 billion in the same period last year which was helped by strong demand across Facebook and Instagram ads.
The stock surged by over 6% in after-hours and Advertising revenue reached US$58.1 billion during the quarter as higher user engagement and AI driven optimisation improved prices and volumes.
Operating income rose to US$24.7 billion with an operating margin of 41% which reflects cost discipline under management’s efficiency initiatives.
Net income for the quarter came in at US$22.8 billion compared to US$20.8 billion last year and diluted earnings per share came in at US$8.88 which was well ahead of analyst expectations.
The Family of Apps segment was the primary earnings contributor and generated operating income of US$30.8 billion while the company continued to invest a lot in AR and VR initiatives.
Daily Active People across Meta’s platforms increased to 3.58 billion in Q4 which highlights continued user growth and strong global engagement levels.
For the full year 2025, capital expenditure rose to US$72.2 billion compared to US$39.2 billion in 2024 as the company accelerated investments in AI.
Management provided positive sales guidance for the March quarter citing strong advertiser demand, improved ad prices and high traction from AI driven advertising tools.
Meta has benefitted from higher ad impressions and average ad prices across the United States and Europe in this quarter.
The company is in a good position to deliver earnings growth in 2026 as operations become more efficient and AI investments help to deliver better monetisation and advertiser returns.
(Source: Company Announcements)
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