Meta, the parent company of Instagram and Facebook, beat Wall Street expectations to report a strong advertising-driven growth in Q4 2025. Advertising revenue hit US$58.137 billion in the December quarter, making up nearly 97% of total Q4 revenue.
Total revenue reached $59.89 billion in Q4 (up 24% YoY) and $200.97 billion for the full year (up 22% YoY).
"We had strong business performance in 2025," said Mark Zuckerberg, Meta founder and CEO. "I'm looking forward to advancing personal superintelligence for people around the world in 2026."
The earnings release showed most growth came from ads across Facebook, Instagram, and other services. Ad impressions across the Family of Apps rose 18% YoY in Q4 and 12% for the full year. Average price per ad increased 6% in Q4 and 9% annually.
Meta noted double-digit YoY revenue growth, with ads driving almost all top-line gains. Higher impressions stemmed from user growth (daily active people hit 3.58 billion, up 7%) plus more engagement and AI ad delivery tweaks.
Pricing gains reversed past pressures from economic issues and privacy changes.
Meta gained from demand in key sectors and performance marketers using AI formats like Reels and Advantage+. More inventory and better conversions drew bigger holiday budgets, despite TikTok and retail media rivalry.
Other areas like Reality Labs stayed small at $955 million in Q4 (down 12%) and hurt margins. Strong ads cushioned this; net income rose 9% to $22.77 billion, via cost controls and scale.
Leaders reaffirmed AR/VR and AI commitments but stressed near-term reliance on ad efficiency and reach.
For 2026, Meta expressed cautious ad optimism amid economic and regulatory risks. Marketers will be looking to see if impression growth holds without harming user experience, and if AI targeting boosts ad returns.
Meanwhile, as Meta ramps up AI infrastructure, its data centres are facing growing political scrutiny over energy costs and environmental impact. The company spent $6.4 million on ads in US state capitals and Washington in late 2025, promoting job creation, claiming 30,000 construction and 5,000 operational roles, though reports note few permanent jobs post-build.
Separately, Zuckerberg must testify this week in a landmark trial accusing Meta and other platforms of designing addictive, youth-harming apps. It's their first time facing prosecutors in open court, harsher than past Congress hearings, which he skipped mentioning on the earnings call.
