Meta Q4 revenue beats analyst expectations

Overview

• Social media giant's Q4 revenue rose 24% yr/yr, beating analyst expectations

• Q4 net income increased 9% yr/yr, despite a 40% rise in costs and expenses

• Operating margin for Q4 decreased to 41% from 48% last year

Outlook

• Meta expects Q1 2026 revenue between $53.5 bln and $56.5 bln

• Company projects 2026 expenses between $162 bln and $169 bln

• Meta anticipates 2026 capital expenditures of $115-135 bln

Result Drivers

• AD IMPRESSIONS - Meta reported an 18% increase in ad impressions across its apps for Q4 2025, contributing to revenue growth

• AD PRICING - Average price per ad rose by 6% in Q4 2025, aiding revenue increase

• USER ENGAGEMENT - Daily active people on Meta's platforms grew by 7% in December 2025, reflecting strong user engagement

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 60 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for Meta Platforms Inc is $820.00, about 21.8% above its January 27 closing price of $672.97

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release: ID:nPn6M6Fxa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.