Meta posts stronger-than-expected Q4 results though costs continue to soar

Meta’s stronger-than-expected fourth-quarter results pushed the company’s shares higher in after-hours trading Wednesday, even as the social media giant warned that costs are likely to rise sharply again this year. The company’s profit and revenue both came in above Wall Street expectations, helped by what analysts and investors pointed to as solid advertising performance.

In the October-December quarter, Meta earned $22.77 billion, or $8.88 per share, according to the company’s results. That represented an increase from $20.84 billion, or $8.02 per share, in the same period a year earlier. Meta also reported that revenue rose 24% to $59.89 billion from $48.39 billion.

Analysts, on average, were expecting earnings of $8.21 per share on revenue of $58.5 billion, based on a FactSet poll. After the results were released, shares of the Menlo Park, California-based company rose $73.15, or 10.9%, to $741.88 in after-hours trading.

Debra Aho Williamson, chief analyst at Sonata Insights, said Meta “surpassed analysts’ earnings expectations for the quarter, cementing its position as one of the world’s most dominant media companies.” Williamson added that the strong performance “provides a solid foundation to continue its massive investments into AI,” and she said that if there were any signs of revenue shortfall, investors would likely view Meta’s capital expenditures more negatively.

While Meta’s top line grew faster than a year earlier, its expense growth accelerated at the same time. The company said its expenses increased 40% to $35.15 billion, following a warning that costs would be significantly higher in the current year. The faster pace of spending helped frame the results as a test of whether advertising gains can keep pace with the scale of investment the company is making for artificial intelligence.

Looking ahead, Meta forecast revenue for the current quarter in a range of $53.5 billion to $56.5 billion. That outlook was above analysts’ estimate of $51.4 billion, according to FactSet. For 2026, Meta projected expenses of $162 billion to $169 billion, driven by infrastructure costs and employee compensation.

Meta said employee compensation and infrastructure spending are key drivers of the projected increase, including compensation for artificial intelligence experts it has been hiring. The company also reported it had 78,865 employees at the end of the year, up 6% from a year earlier.