Meta Platforms 8-K
EarningsNew guidanceImpairment / charge
Infrastructure and technical-talent investment drives a sharp FY2026 spending ramp; EU Less Personalized Ads changes roll out this quarter.
Filed 2026-01-28 16:04 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q4 and FY2025 results with FY2026 and Q1 guidance. Q4 revenue grew 24% Y/Y, while costs and expenses rose 40%, compressing operating margin to 41% from 48%. FY revenue and operating income increased, but net income declined 3%, including the effect of a tax charge related to the One Big Beautiful Bill Act.
Key Figures
| Metric | Q4 2025 | Q4 2024 | Y/Y |
|---|---|---|---|
| Revenue | $59.9B | $48.4B | 24% |
| Costs and expenses | $35.1B | $25.0B | 40% |
| Operating income | $24.7B | $23.4B | 6% |
| Net income | $22.8B | $20.8B | 9% |
| Diluted EPS | $8.88 | $8.02 | 11% |
| Operating cash flow | $36.2B | $28.0B | 29% |
| Free cash flow (non-GAAP) | $14.1B | $13.2B | 7% |
| Metric | FY2025 | FY2024 | Y/Y |
|---|---|---|---|
| Revenue | $201B | $165B | 22% |
| Costs and expenses | $118B | $95.1B | 24% |
| Operating income | $83.3B | $69.4B | 20% |
| Net income | $60.5B | $62.4B | -3% |
| Diluted EPS | $23.49 | $23.86 | -2% |
| Operating cash flow | $116B | $91.3B | 27% |
| Free cash flow (non-GAAP) | $43.6B | $52.1B | -16% |
- Ad impressions increased 18% in Q4 and 12% for FY; average price per ad rose 6% and 9%, respectively. Average December daily active people were 3.58B, up 7% Y/Y.
- FY2025’s 30% effective tax rate included the tax effects of the new law; absent the valuation allowance charge, Meta said the rate would have been 13%.
- Q4 capital expenditures, including finance lease principal, were $22.1B; FY2025 capex was $72.2B. FY share repurchases were $26.2B vs $30.1B in FY2024; Q4 repurchases were nil. Cash, cash equivalents and marketable securities totaled $81.6B, and long-term debt was $58.7B at year-end.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Total revenue | Q1 2026 | $53.5B-$56.5B; foreign currency assumed to be an ≈4% Y/Y growth tailwind | — | — |
| Total expenses | FY2026 | $162B-$169B | — | — |
| Capital expenditures, including principal payments on finance leases | FY2026 | $115B-$135B | — | — |
| Operating income | FY2026 | Above FY2025 operating income of $83.3B | — | — |
| Tax rate, absent changes to tax landscape | FY2026 | 13%-16% | — | — |
Investor Takeaways
- Q1 revenue vs the $53.5B-$56.5B range will show how the stated currency tailwind and advertising trends translate into results.
- FY2026 expenses and capex are expected to rise substantially as Meta invests in infrastructure and technical talent; operating income above FY2025’s $83.3B is the stated measure of whether growth offsets that spending.
- Meta plans to begin rolling out changes to its Less Personalized Ads offering in the EU this quarter; U.S. trials scheduled this year could ultimately result in a material loss.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3