Meta Platforms Faces 11% Decline Post-Earnings: Will It Recover?

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Meta Platforms (META) reported its fourth-quarter 2025 earnings on December 31, 2025, revealing a non-GAAP earnings per share of $8.88, surpassing the Zacks Consensus Estimate by 8.16%. The company’s revenues totaled $59.89 billion, exceeding estimates by 2.22% and reflecting a 23.8% year-over-year growth.

Key drivers of revenue included a 24.6% increase in revenues from the Family of Apps, which comprises Facebook, Instagram, Messenger, and WhatsApp, totaling $58.94 billion. Advertising revenues, accounting for 97.1% of total revenues, also grew by 24.3% year over year to $58.14 billion. Daily Active Users across these platforms reached 3.58 billion, up 7% from the previous year.

Despite sales growth, operating income increased by 18.4% to $24.75 billion; however, the operating margin contracted to 41.3%, down 700 basis points year over year due to a 40.5% rise in total costs and expenses. For Q1 2026, Meta anticipates revenues between $53.5 billion and $56.5 billion, along with expectations for total expenses for 2026 to be between $162 billion and $169 billion.

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