Meta Platforms (META) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $59.9B, up 24% year-over-year, driven by strong advertising, Family of Apps performance, and record user engagement, with daily active users across apps exceeding 3.5B.

• Net income for Q4 2025 was $22.8B, with diluted EPS at $8.88, rebounding from a Q3 tax charge related to the One Big Beautiful Bill Act.

• Major investments in AI, infrastructure, and new product cycles are underway, focusing on personal superintelligence and immersive content.

• Reality Labs is shifting investment toward glasses and wearables, with smart glasses sales more than tripling year-over-year, but the segment posted a Q4 operating loss of $6.0B.

• Family daily active people reached 3.58B in December 2025, up 7% year-over-year.

Financial highlights

• Q4 2025 total revenue was $59.9B, with Family of Apps revenue at $58.9B and ad revenue at $58.1B.

• Reality Labs Q4 2025 revenue was $955M, down 12% year-over-year, with an operating loss of $6.0B.

• Q4 2025 operating income was $24.7B (41% margin); net income was $22.8B ($8.88/share).

• Free cash flow for Q4 2025 was $14.1B; cash and marketable securities ended at $81.6B, with $58.7B in debt.

• Capital expenditures for 2025 YTD were $72.2B, up from $39.2B in 2024.

Outlook and guidance

• Q1 2026 revenue expected between $53.5B and $56.5B, with a 4% FX tailwind.

• Full-year 2026 expenses projected at $162–$169B, mainly driven by infrastructure and technical talent.

• 2026 capital expenditures expected at $115–$135B, focused on AI and core business infrastructure.

• Operating income for 2026 expected to exceed 2025 in absolute dollars.

• Tax rate for 2026 anticipated at 13–16%.