Meta Platforms, Inc. (META) reported a strong Q4 earnings report on Wednesday, revealing sales of $59.89 billion, a 24% increase from $48.38 billion year-over-year, and beating expectations of $58.59 billion. The company’s earnings per share (EPS) also rose to $8.88, surpassing forecasts of $8.21 and reflecting an 11% year-over-year increase from $8.02.
Despite announcing a significant capital expenditures (CapEx) increase, projected between $115-$135 billion by 2026, investors reacted positively due to AI’s role in enhancing ad targeting and engagement. Additionally, Meta anticipates Q1 2026 revenues of $53.5-$56.5 billion, exceeding Wall Street expectations of $51.38 billion.
Meta’s return on invested capital (ROIC) stands at 27%, well above the S&P 500 average of 15%. The company’s forward price-to-earnings (P/E) ratio of 22X is the lowest among the “Mag 7” tech stocks, offering a compelling valuation compared to peers.
