Key Points
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Meta’s advertising revenue increased by 24% year-over-year in Q4, reaching $58.1 billion, bolstered by AI transformation in its ad business.
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Agentic coding has boosted Meta’s output per engineer by 30% and by 80% for power users since early 2025.
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Reality Labs, which focuses on augmented and virtual reality, is expected to reduce its $6 billion quarterly loss by 2026, positively impacting overall profitability.
Meta Platforms (NASDAQ: META) reported a significant growth in Q4, with advertising revenue soaring to $58.1 billion, a 24% increase year-over-year. The integration of artificial intelligence has played a pivotal role in enhancing the effectiveness of its ad strategies, resulting in a 3.5% rise in ad clicks on Facebook and over 1% in Instagram ad conversions. CFO Susan Li noted ongoing improvements in productivity due to agentic coding, which has increased output by 30% per engineer.
The company’s investment in AI-powered smart glasses has seen sales triple in 2025. CEO Mark Zuckerberg claims these devices could revolutionize the market, akin to the smartphone transition. Furthermore, Meta’s Reality Labs is expected to see a decline in losses post-2026 as investments pivot towards AI technologies. This strategic shift promises to enhance profitability and reduce dependency on third-party technology suppliers.
