"The core Family of Apps segment - Facebook, Instagram, WhatsApp, and Messenger - drove the momentum, generating $58.9 billion in revenue (up 25%) and $58.1 billion in advertising (up 24%). Ad impressions grew 18%, with average price per ad rising 6%. Operating income hit $24.7 billion, yielding a robust 41% margin. AI enhancements played a key role here, boosting engagement - such as a 7% lift in organic feed and video views - and improving ad performance through better ranking, personalization."
"This contrasts sharply with the metaverse era, when CEO Mark Zuckerberg's bold pivot to virtual reality led to massive, unprofitable spending without clear returns. Reality Labs continues to struggle, with Q4 revenue falling 12% to $955 million, while operating losses widened to $6.02 billion compared to $4.97 billion a year earlier. Cumulative losses since late 2020 now approach $80 billion, with full-year 2025 losses at $19.2 billion."
"The company reported Q4 revenue of $59.9 billion, up 24% year-over-year and surpassing Wall Street expectations of around $58.6 billion. Earnings per share came in at $8.88, also topping estimates of $8.22 and rising from $8.02 a year ago. Daily active users generating media with Meta AI tripled year-over-year."
Meta delivered Q4 revenue of $59.9 billion (up 24% year-over-year) and EPS of $8.88, both beating expectations. The Family of Apps drove results with $58.9 billion in revenue and $58.1 billion in advertising as ad impressions rose 18% and average ad price increased 6%. AI features boosted engagement, including a 7% lift in organic feed and video views, and tripled daily active users creating media with Meta AI. Reality Labs saw Q4 revenue fall 12% to $955 million while operating losses widened to $6.02 billion, with cumulative losses near $80 billion and losses expected to peak in 2026.
Read at TalkMarkets
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