Meta Q4 2025 Earnings: $60B Revenue, But the Real Story Is $135B in AI Spending

Meta just posted a monster quarter — $59.89 billion in revenue (up 24%), $8.88 earnings per share (up 11%), and $22.77 billion in net income (up 9%). All of those beat expectations.

But the headline everyone is talking about? Meta is planning to spend $115-135 billion on AI infrastructure in 2026. That's nearly double what they spent in 2025.

Zuckerberg is going all-in on what he's calling "personal superintelligence." Let's break down what that means.

The Numbers: Meta Is Printing Money

Q4 was a strong quarter across the board:

• Revenue: $59.89B (up 24% year-over-year, or 23% in constant currency)
• EPS: $8.88 (up 11%)
• Net income: $22.77B (up 9%)
• Operating margin: 41% (down from 48% last year, but still very high)

Meta is making more money than ever. The advertising business is still humming, and Instagram and Facebook continue to dominate social media.

But the operating margin dropped from 48% to 41%. Why? Because Meta is spending a fortune on AI.

The Big Story: $115-135 Billion in AI Capex

Meta announced it will spend $115-135 billion on capital expenditures (capex) in 2026. Most of that is going to AI data centers, Nvidia GPUs, and infrastructure to power Meta's AI ambitions.

To put that in perspective:

• 2025 capex: ~$72B
• 2026 capex: $115-135B

That's nearly doubling in one year. Meta is betting bigger on AI than almost any other company in the world.

Zuckerberg's pitch? He wants to build "personal superintelligence" — AI assistants that understand you better than anyone else. Think of it like having a personal AI that knows your preferences, your habits, and your goals, and can help you with everything from planning trips to managing your schedule.

The market's reaction? Mixed. Some investors love the ambition. Others are worried Meta is spending too much before proving AI will actually make money.

Q1 2026 Guidance: Strong Growth Ahead

Meta also gave guidance for Q1 2026, and it's bullish:

• Revenue: $53.5-56.5B (analysts only expected $51.4B)
• That's a big beat on guidance

If Meta hits the high end, that's another 20%+ growth quarter. The advertising business is still strong, and Meta's AI-powered ad targeting is getting better.

Daily Active People: 3.58 Billion

Meta now has 3.58 billion daily active people across Facebook, Instagram, WhatsApp, and Threads. That's more than half the world's internet users.

This is Meta's moat — no other company has this much reach. And every one of those users is seeing AI-powered ads, which is why Meta's advertising business keeps growing.

What Zuckerberg Said

From the earnings call:

"We had strong business performance in 2025. I'm looking forward to advancing personal superintelligence for people around the world in 2026."

Translation: Meta is going all-in on AI, and Zuckerberg thinks it's going to change everything.

The Bottom Line for Investors

Meta is in a weird spot. The core business (ads on Facebook and Instagram) is doing great. Revenue is up 24%, and they're making $23 billion in profit every quarter.

But they're also spending $115-135 billion on AI in 2026, and no one knows if it'll pay off.

The stock jumped 10% after earnings because investors liked the strong Q1 guidance and the fact that Meta is still growing fast. But the AI spending is a gamble. If it works, Meta could dominate the next era of computing. If it doesn't, they'll have spent $135 billion for nothing.

For now, the market is giving Zuckerberg the benefit of the doubt. But the pressure is on to show that AI can actually generate revenue, not just burn cash.