Meta Beats Q4 Earnings, Plans $115B-$135B AI Capex

Meta reported blockbuster results for the fourth quarter of 2025 on Wednesday, surpassing Wall Street expectations with revenue of $59.9 billion, a 24 percent increase from the previous year, and earnings per share of $8.88. The company also outlined ambitious plans to nearly double its capital expenditures to between $115 billion and $135 billion in 2026, primarily to fuel artificial intelligence infrastructure and development of advanced AI models.

The strong performance was driven largely by advertising, which continues to form the backbone of Meta's business. Net income reached $22.8 billion, up 9 percent year over year. Daily active users across Meta's family of apps, including Facebook, Instagram, WhatsApp and Threads, averaged 3.58 billion in December 2025, marking a 7 percent rise from the prior year. For the first quarter of 2026, Meta guided revenue to $53.5 billion to $56.5 billion, exceeding analyst projections of around $51.4 billion.

Chief Executive Mark Zuckerberg emphasized the company's pivot toward AI during the earnings call, describing 2026 as a pivotal year for advancing what he called "personal superintelligence." He noted that Meta had rebuilt the...