"Meta Platforms grew ads revenue 24% year over year to $58.1 billion in Q4, a period that saw record holiday advertising demand and the social media giant continuing to fine-tune its artificial intelligence bets. Executives positioned 2026 as a moment of organizational transformation driven by AI - including the "flattening" of some teams - after years of hype. "We are now seeing a major AI acceleration," said Meta CEO Mark Zuckerberg in prepared remarks. "I expect 2026 to be a year where this wave accelerates even further on several fronts.""
"Overall ad impressions at Meta rose 18% YoY for the quarter ended Dec. 31 while the average price per ad ticked up 6%, a reflection of higher demand, according to an earnings statement. Discussing his long-term AI vision, Zuckerberg illustrated potential use cases like writing a prompt to create a personalized video game through Meta's Horizon Worlds platform that can then be shared within a user's social network. The near term will see the company continuing to double down on what's already working on the business front while the specifics of more complex AI applications are ironed out."
""We are focused on things beyond ads. I think the numbers make it so that for the next couple of years, ads are going to be, by far, the most important driver of growth in our business," said Zuckerberg on a call discussing the results with investors. "All these things, even if they scale very quickly, are going to take some time to be meaningful at the scale of what the ads business is." On the back end, Meta is leveraging AI to improve its ads ranking and learning models that analyze user behavior. In Q4, the company doubled the number of graphics processing units dedicated to training its Generative Ads Recommendation Model and made other tweaks that, taken together, resulted in a 3% lift in clicks on Facebook and a 1% boost to conversions on Instagram, CFO Susan Li said"
Meta Platforms reported a 24% year-over-year increase in Q4 ads revenue to $58.1 billion driven by record holiday advertising demand. Overall ad impressions rose 18% while average price per ad increased 6%, reflecting stronger ad demand. Executives forecast 2026 as a year of accelerated AI-driven change and organizational "flattening." The company expects ads to remain the primary growth driver for the next few years while pursuing broader AI use cases. Meta doubled GPUs for training its Generative Ads Recommendation Model, producing a 3% lift in Facebook clicks and a 1% boost in Instagram conversions.
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