Meta Platforms (NASDAQ:META) Issues Quarterly Earnings Results, Beats Expectations By $0.72 EPS

Meta Platforms (NASDAQ:META) announced its earnings results on Wednesday. The social networking company reported $8.88 earnings per share for the quarter, beating the consensus estimate of $8.16 by $0.72, Zacks reports. The firm had revenue of $59.89 billion for the quarter, compared to the consensus estimate of $58.33 billion. Meta Platforms had a return on equity of 39.35% and a net margin of 30.89%.The firm’s revenue for the quarter was up 23.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $8.02 EPS.

Here are the key takeaways from Meta Platforms’ conference call:

• Meta reported continued scale in engagement with more than 3.5 billion daily users, including over 2 billion daily actives each on Facebook and WhatsApp and Instagram close behind.
• Q4 results were strong—consolidated revenue of $59.9 billion (+24% YoY), family-of-apps ad revenue +24%, impressions +18% and operating income of $24.7 billion, driven by holiday demand and AI-driven ad performance gains.
• Management is accelerating AI product work—rebuilt AI foundations, launching Meta Superintelligence Labs models and integrating LLMs with recommendation systems to enable personalized “agents,” new media formats, and commerce features that could create new monetization streams.
• Meta plans a large infrastructure push in 2026 with guidance for full-year expenses of $162–$169 billion and CapEx of $115–$135 billion; management expects operating income above 2025 but this materially increases near-term spending and capital intensity.

Meta Platforms Stock Down 0.6%

Shares of Meta Platforms stock traded down $4.24 during midday trading on Wednesday, reaching $668.73. 24,558,039 shares of the company’s stock traded hands, compared to its average volume of 15,521,992. The company has a market cap of $1.69 trillion, a price-to-earnings ratio of 29.54, a price-to-earnings-growth ratio of 1.33 and a beta of 1.29. Meta Platforms has a 52 week low of $479.80 and a 52 week high of $796.25. The company’s 50 day simple moving average is $645.06 and its 200 day simple moving average is $696.04. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.98 and a current ratio of 1.98.

Meta Platforms Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, December 23rd. Shareholders of record on Monday, December 15th were paid a $0.525 dividend. The ex-dividend date was Monday, December 15th. This represents a $2.10 dividend on an annualized basis and a yield of 0.3%. Meta Platforms’s payout ratio is 9.28%.

Key Stories Impacting Meta Platforms

Here are the key news stories impacting Meta Platforms this week:

• Positive Sentiment: Q4 results materially beat expectations: revenue roughly $59.9B and EPS of $8.88, plus first?quarter revenue guidance above consensus ($53.5B–$56.5B). Strong ad momentum and user metrics support the core business. CNBC: Meta beats on top, bottom lines, gives stronger-than-expected forecast
• Positive Sentiment: Wall Street reaction includes fresh bullish calls and upgrades ahead of/after the print, reflecting confidence in ad recovery and AI-driven monetization. Evercore reiterates outperform
• Neutral Sentiment: Meta is testing premium subscription tiers across Instagram, Facebook and WhatsApp to diversify revenue and add AI features — a potential long?term positive but unclear near?term impact. CNBC: Meta to test premium subscription plans
• Neutral Sentiment: Large supplier deals (e.g., up to $6B with Corning for fiber?optic cable) validate Meta’s AI data?center buildout but also signal sustained capital intensity. CNBC: Corning deal
• Negative Sentiment: Reality Labs continues to be a heavy drag: an operating loss of about $6.02B in Q4 and management disclosing multi?billion?dollar losses tied to XR investments. That amplifies margin risk. CNBC: Reality Labs loss
• Negative Sentiment: Meta signaled a dramatic increase in AI capex for 2026 (management cited a $115B–$135B buildout range), a front?loaded spending plan that raises questions about near?term returns and margin dilution. Reuters: Capex rise
• Negative Sentiment: Earlier TechCrunch reporting shows Reality Labs burned roughly $19B in recent periods and layoffs in that unit — a reminder that XR investment remains costly and uncertain. TechCrunch: $19B VR burn
• Negative Sentiment: Insider sale: COO Javier Olivan sold 517 shares (small amount relative to his holdings) — a minor negative signal that some investors will note. SEC filing

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on META shares. Cantor Fitzgerald lifted their price target on Meta Platforms from $720.00 to $750.00 and gave the company an “overweight” rating in a research report on Thursday, January 8th. Rosenblatt Securities reaffirmed a “buy” rating and set a $1,117.00 target price on shares of Meta Platforms in a report on Wednesday, January 14th. Morgan Stanley cut their price target on shares of Meta Platforms from $820.00 to $750.00 and set an “overweight” rating for the company in a report on Thursday, December 11th. Guggenheim reduced their price objective on shares of Meta Platforms from $875.00 to $800.00 and set a “buy” rating for the company in a research report on Thursday, January 8th. Finally, Benchmark downgraded shares of Meta Platforms from a “buy” rating to a “hold” rating in a report on Thursday, October 30th. Five analysts have rated the stock with a Strong Buy rating, thirty-eight have issued a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $822.00.

Insider Transactions at Meta Platforms

In other Meta Platforms news, insider Jennifer Newstead sold 519 shares of the company’s stock in a transaction that occurred on Tuesday, December 30th. The stock was sold at an average price of $658.69, for a total transaction of $341,860.11. Following the completion of the sale, the insider owned 28,658 shares of the company’s stock, valued at $18,876,738.02. This represents a 1.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Javier Olivan sold 517 shares of the company’s stock in a transaction on Monday, January 26th. The stock was sold at an average price of $665.00, for a total transaction of $343,805.00. Following the sale, the chief operating officer directly owned 10,132 shares of the company’s stock, valued at approximately $6,737,780. This represents a 4.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 40,113 shares of company stock worth $24,621,042. 13.61% of the stock is owned by corporate insiders.

Institutional Trading of Meta Platforms

A number of hedge funds have recently modified their holdings of the company. Schnieders Capital Management LLC. boosted its position in Meta Platforms by 33.9% during the 2nd quarter. Schnieders Capital Management LLC. now owns 29,084 shares of the social networking company’s stock worth $21,467,000 after acquiring an additional 7,359 shares during the last quarter. Revolve Wealth Partners LLC lifted its position in shares of Meta Platforms by 10.2% in the fourth quarter. Revolve Wealth Partners LLC now owns 9,456 shares of the social networking company’s stock worth $5,537,000 after purchasing an additional 875 shares in the last quarter. United Bank grew its position in Meta Platforms by 13.6% in the second quarter. United Bank now owns 6,860 shares of the social networking company’s stock valued at $5,063,000 after purchasing an additional 822 shares in the last quarter. Brighton Jones LLC grew its position in Meta Platforms by 1.7% in the fourth quarter. Brighton Jones LLC now owns 34,551 shares of the social networking company’s stock valued at $20,230,000 after purchasing an additional 570 shares in the last quarter. Finally, Binnacle Investments Inc increased its stake in Meta Platforms by 7.9% in the 3rd quarter. Binnacle Investments Inc now owns 329 shares of the social networking company’s stock valued at $242,000 after buying an additional 24 shares during the last quarter. Institutional investors own 79.91% of the company’s stock.

About Meta Platforms

Meta Platforms, Inc (NASDAQ: META), formerly Facebook, Inc, is a global technology company best known for building social networking services and immersive computing platforms. Founded in 2004 and headquartered in Menlo Park, California, the company operates a family of consumer-facing products and services that connect users, creators and businesses. In October 2021 the company rebranded as Meta to reflect an expanded strategic focus on augmented and virtual reality technologies alongside its social media businesses.

Meta’s core consumer products include Facebook, Instagram, WhatsApp and Messenger, which enable social networking, messaging, content sharing and community building across mobile and desktop devices.