Prime Highlights:
- Meta Platforms reported better-than-expected fourth-quarter earnings and issued an upbeat sales forecast, driving its shares up as much as 10% in after-hours trading.
- Strong advertising demand continued into early 2026, supporting confidence in revenue growth and funding higher investment in artificial intelligence.
Key Facts:
- Fourth-quarter earnings per share came in at $8.88 on revenue of $59.89 billion, both exceeding analyst expectations.
- Meta forecasts first-quarter revenue between $53.5 billion and $56.5 billion and plans capital spending of up to $135 billion in 2026, largely focused on AI.
Background
Meta Platforms reported better-than-expected fourth-quarter earnings and issued a strong sales forecast, sending its shares up as much as 10% in after-hours trading on Wednesday. The results showed steady growth in advertising and rising demand that continued into early 2026.
The social media company posted earnings per share of $8.88, beating analyst estimates. Revenue reached $59.89 billion, also topping expectations. Meta said fourth-quarter sales increased 24% from a year earlier, driven largely by its core advertising business.
Advertising generated $58.1 billion in revenue during the quarter, accounting for nearly all of the company’s total sales. Meta also reported 3.58 billion daily active users across its platforms, in line with market forecasts.
Looking ahead, Meta said it expects first-quarter revenue to range between $53.5 billion and $56.5 billion, well above analyst estimates. Finance chief Susan Li said the outlook reflects strong advertiser demand seen at the end of the fourth quarter and continuing into the new year.
Meta said it plans to increase spending in 2026, with total expenses expected to fall between $162 billion and $169 billion. Capital spending linked to artificial intelligence is forecast at $115 billion to $135 billion, nearly double last year’s level. The company said the higher investment will support its AI research, infrastructure, and core products.
Chief executive Mark Zuckerberg said Meta plans to release new AI models in the coming months and aims to show rapid progress throughout the year.
