Meta hits $200 billion revenue milestone on AI-powered ad surge

Meta Platforms Inc, the parent company of Facebook, Instagram and WhatsApp, reported strong financial performance for the fourth quarter and the full year ended 31 December 2025, driven largely by sustained growth in advertising revenue. The results underline Meta’s continued dominance in digital advertising, even as the company faces sharply rising costs linked to aggressive investments in artificial intelligence and infrastructure.

Revenue remained the core engine of Meta’s performance. For the fourth quarter, the company posted total revenue of $59.89 billion, representing a 24 per cent increase compared to $48.39 billion in the same period last year. On a constant currency basis, revenue grew by 23 per cent. For the full year, Meta generated $200.97 billion in revenue, up 22 per cent from $164.50 billion in 2024.

Advertising continued to contribute the bulk of Meta’s topline. Revenue from advertising across the Family of Apps segment, which includes Facebook, Instagram, Messenger and WhatsApp, increased during the quarter as both ad impressions and the average price per ad rose. Meta’s vast user base remained central to this growth, with the company reporting an average of 3.58 billion Family Daily Active People in December 2025, a 7 per cent increase year on year.

Commenting on the results, chief executive Mark Zuckerberg said Meta delivered a strong business performance in 2025 while continuing to invest heavily in areas expected to shape its long-term future, particularly artificial intelligence. He emphasised that these investments are aimed at building foundational capabilities that will support future products and platforms.

At the same time, rising revenue was accompanied by a sharp increase in costs. Total costs and expenses climbed to $35.15 billion in the fourth quarter, up 40 per cent from the previous year. For the full year, costs reached $117.69 billion, marking a 24 per cent increase. The rise was largely driven by higher infrastructure-related expenses, increased research and development spending, and higher employee compensation as Meta expanded its technical and engineering workforce.

Despite these pressures, profitability remained solid. Income from operations for the fourth quarter stood at $24.75 billion, up 6 per cent year on year. Full-year operating income came in at $83.28 billion, reflecting a 20 per cent increase. Net income for the quarter rose to $22.77 billion, while diluted earnings per share increased to $8.88, up 11 per cent compared to the previous year.

Investment spending accelerated significantly during the period. Capital expenditure reached $22.14 billion in the fourth quarter alone, taking full-year capex to $72.22 billion. Most of this spending was directed towards data centres, servers and AI-related infrastructure, highlighting Meta’s push to expand computing capacity in anticipation of future demand.

Looking ahead, Meta expects first-quarter 2026 revenue to be in the range of $53.5 billion to $56.5 billion, supported by favourable foreign exchange movements. The company forecasts total expenses for 2026 to fall between $162 billion and $169 billion, signalling continued pressure on margins. Capital expenditure is also expected to rise further, with full-year guidance set between $115 billion and $135 billion.