Meta posted quarterly results that beat market expectations, sending the stock surging in after-hours transaction. The company expressed confidence that operating profit will grow this year even as it expands investment in artificial intelligence (AI) and infrastructure.
Meta said on the 28th (local time) that fourth-quarter revenue last year rose 24% from a year earlier to $59.89 billion (about 85.7 trillion won). That topped the $58.59 billion forecast compiled by market research firm LSEG.
Advertising revenue climbed 24% to $58.137 billion, driving earnings growth. In contrast, Reality Labs, which handles smart glasses and Virtual Reality (VR) devices, saw revenue fall more than 11% to $955 million, while operating loss widened to $6.021 billion.
Earnings per share in the fourth quarter were $8.88, above the market estimate of $8.23. Full-year revenue rose 22% from a year earlier to $200.97 billion (about 287.6 trillion won).
Meta also laid out a large-scale investment plan for this year. With increased investment in core businesses such as MSL, capital expenditures (CAPEX) this year are projected to reach up to $135 billion (about 193.2 trillion won). That is above the market expectation of $110.7 billion.
It also projected that annual total expense will rise to as much as $169 billion due to higher costs for operating AI infrastructure and hiring talent. Still, Meta said operating profit will increase from a year earlier despite the higher expense.
Meta CEO Mark Zuckerberg said, "In 2026, we will focus on developing personalized superintelligence," adding, "We will unveil the latest AI model within a few months." Regarding Reality Labs, he said this year will mark the peak of losses.
Meta shares slipped slightly in regular trading but rose about 9% in after-hours transaction following the earnings release.