Meta Stock Rises After Earnings Beat and Massive AI Spending Plans

Meta Platforms delivered stronger-than-expected fourth-quarter results, pushing Meta stock into focus as investors assessed both near-term performance and long-term AI ambitions. Revenue for Q4 2025 reached $59.89 billion, reflecting 24% year-over-year growth driven largely by advertising gains across the Family of Apps.

Net income climbed to $22.77 billion, up 9% from last year, while diluted earnings per share came in at $8.88, exceeding market expectations. Meta stock found support in the company’s ability to generate $14.08 billion in free cash flow during the quarter, even as expenses rose sharply.

Q4 Performance Highlights

• Advertising revenue growth across core platforms
• Total costs and expenses of $35.15 billion, up about 40% year over year
• Headcount increased 6% to 78,865 employees

Reality Labs posted $955 million in quarterly revenue, declining year over year. Management signaled that losses in the segment should remain similar in 2026, alongside a workforce reduction affecting roughly 10% of the unit.

Guidance Reshapes the Meta Stock Outlook

Meta guided first-quarter 2026 revenue between $53.5 billion and $56.5 billion, above expectations and pointing to growth of up to 30%.The company also plans to lift 2026 capital spending to $115 billion-$135 billion, focused on AI data centers, cloud infrastructure and advanced computing.

Meta’s Q4 results highlight how its advertising engine, platform scale, and accelerating AI investments are reshaping long-term growth expectations. As the company ramps capital spending on data centers and advanced computing, understanding Meta Platforms’ business model, ownership structure, apps, AI strategy and revenue drivers becomes essential for investors evaluating Meta stock beyond near-term earnings momentum.

Meta stock traded near $673 as investors weighed strong earnings momentum against the scale of upcoming AI investments.