Meta (META) Beat Q4 Estimates as AI Advertising Efficiency Drives Growth

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Meta (META) Beat Q4 Estimates as AI Advertising Efficiency Drives Growth

Sheryar Siddiq

Fri, February 20, 2026 at 5:45 PM GMT+9 1 min read

In this article:

  •                                       StockStory Top Pick 
    

    META

    +0.24%

Meta Platforms, Inc. (NASDAQ:META) ranks among billionaire David Tepper’s 10 favorite stocks. On February 3, Meta Platforms, Inc. (NASDAQ:META) reported strong financial results for the fourth quarter of 2025, with earnings per share of $8.88 exceeding the projected $8.19. Meanwhile, revenue came in at $59.9 billion, exceeding the expected $58.35 billion. Record Christmas traffic and AI-driven gains in ad efficiency also accelerated the company’s top-line growth.

Despite a rise in AI infrastructure expenses, Meta’s free cash flow exceeded market forecasts. Moreover, management provided encouraging projections for the first quarter of 2026, reiterating that absolute operating profit in 2026 will exceed 2025 figures.

Meta Platforms, Inc. (NASDAQ:META) projects revenue for the first quarter of 2026 to fall between $53.5 billion and $56.5 billion. In addition, with capital expenditures projected at $115 billion to $135 billion, the company forecasts full-year 2026 expenses to be around $162 billion and $169 billion.

Meta Platforms, Inc. (NASDAQ:META) is a California-based company that develops social media applications. Dedicated to connecting people and growing businesses, the company has two segments: Family of Apps (FoA) and Reality Labs (RL).

While we acknowledge the potential of META as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

**READ NEXT: 10 Best Magic Formula Stocks for 2025 and **10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.

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