Meta records strong revenue growth, eyes heavy AI investment in 2026

Meta Platforms Inc. has reported strong revenue growth for the fourth quarter and full year ended December 31, 2025, driven by higher advertising demand across its family of applications.

The company made this known in its 2025 fourth quarter report on Thursday.

Meta said its revenue rose by 24 per cent to 59.89 billion dollars in the fourth quarter and 22 per cent to 200.97 billion dollars for the full year.

Meta Founder and Chief Executive Officer, Mark Zuckerberg, attributed the performance to solid business execution and growing user engagement.

“We had strong business performance in 2025, and I am looking forward to advancing personal superintelligence for people around the world in 2026,” Zuckerberg said.

Meta said its Family Daily Active People (DAP) increased by seven per cent year-on-year to an average of 3.58 billion users in December 2025.

It said that advertising remained the company’s main revenue driver, with ad impressions rising by 18 per cent in the fourth quarter and 12 per cent for the full year.

Average price per ad increased by six per cent in the fourth quarter and nine per cent for the full year, it said.

The company noted that total costs and expenses increased to 35.15 billion dollars in the fourth quarter and 117.69 billion dollars for the year, reflecting higher infrastructure spending and employee-related costs.

Meta disclosed that capital expenditure rose sharply to 22.14 billion dollars in the fourth quarter and 72.22 billion dollars for the full year, largely due to investments in data centres and artificial intelligence infrastructure.

As of Dec. 31, 2025, Meta said that it held 81.59 billion dollars in cash and marketable securities, while long-term debt stood at 58.74 billion dollars.

The company reported operating cash flow of 36.21 billion dollars for the fourth quarter and 115.80 billion dollars for the year, with free cash flow of 14.08 billion dollars and 43.59 billion dollars, respectively.

Meta disclosed that its workforce grew by six per cent year-on-year to 78,865 employees.

Looking ahead, the company said it expected first-quarter 2026 revenue to range between 53.5 billion dollars and 56.5 billion dollars, supported by favourable foreign exchange movements.

Meta projected total expenses of 162 billion to 169 billion dollars in 2026, with most of the increase expected from infrastructure expansion and investments in technical talent, particularly in artificial intelligence.

The company said that capital expenditure in 2026 could rise to between 115 billion dollars and 135 billion dollars, reflecting increased investment in its Meta Superintelligence Labs and core businesses.

In spite of higher spending, Meta said it expected operating income in 2026 to exceed 2025 levels, while warning that regulatory and legal challenges in the United States and Europe could impact future financial results.