Meta Platforms beat Wall Street expectations in the fourth quarter of 2025, sending shares higher Wednesday as the company doubled down on costly artificial intelligence investments with investors closely watching Meta platforms Q4 earnings amid mounting legal and regulatory pressure.
Meta reported revenue of $59.89 billion for the quarter topping analysts’ expectations of $58.59 billion. Earnings reached $8.88 per share, above the $8.23 forecast, according to market estimates released Wednesday.
The stronger-than-expected results pushed Meta shares up nearly 10% in after-hours trading, easing investor concerns about the company’s escalating spending on artificial intelligence infrastructure.
“We had strong business performance in 2025,” Zuckerberg said on the company’s earnings call. “I’m looking forward to advancing personal superintelligence for people around the world in 2026.”
Earnings Beat Lifts Shares Despite Massive AI Investments
The earnings follow a year of aggressive expansion in Meta’s AI footprint, including billions of dollars directed toward new data centers. On Tuesday, the company announced a deal worth up to $6 billion with Corning to supply fiber-optic cables for its facilities.
Meta said it expects total spending of between $162 billion and $169 billion in 2026. Most of that will go toward infrastructure, followed by employee compensation, including hiring to support AI development.
Some investors have questioned whether the rapid pace of AI spending could hurt profitability amid broader concerns of a financial bubble around artificial intelligence. Zuckerberg said the investments are necessary and will pay off over time.
When asked how AI spending would translate into revenue, Zuckerberg said the company is already seeing progress. “We’re starting to see agents really work,” he said. “This will unlock the ability to build completely new products and transform how we work.”
Zuckerberg Pitches Personal AI as Next Growth Engine
Meta is focusing on building AI systems designed to understand users on a personal level, blending large language models with the recommendation engines that power Facebook, Instagram, Threads and advertising. These developments come as investors closely watch Meta platforms Q4 earnings, which have exceeded expectations and fueled confidence in the company’s AI strategy.
“Today, our apps feel like algorithms that recommend content,” Zuckerberg said. “Soon, you’ll open our apps and you’ll have an AI that understands you and also happens to be able to show you great content.”
The strategy marks a shift from Meta’s earlier emphasis on virtual reality and the metaverse. This week, the company began laying off more than 1,000 employees tied to virtual reality efforts, about 10% of its Reality Labs division, according to multiple reports.
Reality Labs posted a loss of $6.02 billion on $955 million in sales. Zuckerberg said losses in the unit are expected to be similar this year, with future investment focused largely on glasses and wearables. He said sales of Meta’s smart glasses more than tripled last year.
Data Centers, Layoffs and Trial Add Pressure Points
As Meta and other technology companies expand data center construction, lawmakers are scrutinizing the facilities’ impact on energy costs and the environment. Georgia is leading an effort to temporarily halt new data center construction, with Maryland and Oklahoma considering similar moves.
Democrats in Congress are investigating whether companies are passing higher utility costs onto consumers. Former President Donald Trump has also raised concerns about electricity prices tied to data centers.
Meta has launched a public relations campaign defending the facilities, spending $6.4 million on advertising late last year, according to a New York Times report, as scrutiny grows around data center expansion and Meta platforms Q4 earnings.
Meanwhile, Zuckerberg is set to testify in a trial that began this week accusing Meta and other companies of making social media intentionally addictive for young users. Zuckerberg did not address the case on the earnings call.
The trial marks the first time executives will face questioning in open court on those allegations, adding legal uncertainty as Meta pushes deeper into artificial intelligence.
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